Technical outlook:
EURUSD continues to drift lower inching closer to the 1.0710 support as the bulls prepare for a pullback. The single currency pair is seen to be trading close to 1.0735 at this time in writing and is expected to produce a corrective pullback before resuming lower towards 1.0500. Intraday resistance is seen towards the 1.0875-1.0900 zone, which could be the next turning point.
As discussed earlier, EURUSD is close to completing its expanded flat corrective wave towards 1.0500. The instrument could further extend its drop towards 1.0250 and 1.0100 before turning higher again. The entire larger-degree structure continues to be bullish against 0.9535 as the corrective phase is likely to complete at about 1.0250.
EURUSD is showing bullish RSI divergence on smaller timeframes, which indicates a potential bullish retracement soon towards the 1.0875-1.0900 zone. Immediate support is defined at about 1.0700, while resistance is close to the 1.0940-50 area. The medium-term direction still remains lower but short-term rallies remain possible.
Trading idea:
A potential bearish move to continue towards 1.0500
Good luck!
