Technical outlook:
EURUSD has yet again rallied through the 1.0800-10 range intraday on Tuesday in line with our projections made earlier. The single currency pair is seen to be trading just above the 1.0800 mark at this point in writing as the bears prepare to come back strong from here soon. A final leg lower should bring prices closer to 1.0500 going forward.
EURUSD earlier rallied to produce a larger-degree upswing between 0.9535 and 1.1035. Since then, the instrument has been carving an expanded flat corrective wave, which is projected toward 1.0500 at least and up to 1.0250 going forward. The bears now seem to be determined to drag the price one last time to complete the pattern.
EURUSD has just worked on a lower-degree counter-trend rally from 1.0640 through 1.0800-10 levels. The currency pair is facing resistance here and prices should resume lower towards 1.0500. Also, note that 1.0500 is close to the Fibonacci 0.618 retracement of the earlier upswing we discussed above. We expect a rally to come into practice thereafter.
Trading idea:
A potential drop to 1.0500 soon
Good luck!
