Technical outlook:
EURUSD has resumed its sideways action between 1.0650 and 1.0750 as expected. The single currency pair is seen to be trading close to 1.0725 at this point in writing and could drop to 1.0695 before resuming higher towards 1.0750-60 levels. The above triangle consolidation is expected to continue for a while before prices break lower through 1.0500.
EURUSD has been unfolding a larger-degree Wave C towards 1.0500 to complete the complex corrective phase, which started from the 1.1035 highs earlier. Also, note that 1.0500 is the Fibonacci 0.382 retracement of its previous larger-degree upswing between 0.9535 and 1.1035 levels respectively. The high probability remains for a bullish turn if prices slip to 1.0500.
EURUSD is into its last leg after printing intraday highs at 1.0779 over the last week. Resistance is strong around the 1.0820-30 zone. If the instrument manages to rally, the bears will be prepared to drag prices lower again. On the flip side, a break below 1.0640 will accelerate a drop towards 1.0500 in the near term.
Trading idea:
A potential drop to 1.0500 against 1.0850
Good luck!
