Technical outlook:
EURUSD found intraday support around 1.0730 on Monday. The single European currency is seen to be trading close to the 1.0745 mark at this point in writing and is expected to retest the 1.0800 level before turning lower again. The next leg lower should drag prices towards the 1.0500 mark before bulls are back in control. Intraday resistance is seen towards the 1.0800-20 range as marked on the chart above.
EURUSD is still unfolding a complex corrective structure, which began at the high of 1.1035. The expanded flat corrective wave is within its last leg lower at least towards the 1.0500 level and potentially up to 1.0250 going forward. Also, note that 1.0500 and 1.0100 are the Fibonacci 0.382 and 0.618 retracement levels of the earlier upswing.
EURUSD is working on a lower-scale corrective wave since the 1.0640 lows and is expected to pause close to the 1.0800-20 range in the near term. There is a high probability that the price will turn lower from there and move to the 1.0500 mark to complete the pattern. Bulls will be prepared to come back in control from the 1.0500 zone going forward.
Trading plan:
Potential drop through 1.0500.
Good luck!
