Technical outlook:
EURUSD rallied towards 1.1010 last week before hitting resistance. The bears were back in control dragging prices lower through the 1.0850-60 zone on Friday. The single currency pair has recovered since then and is now seen to be trading close to the 1.0900-10 range at this point in writing. Intraday resistance is seen toward the 1.0945-50 area, hence watch out for a bearish turn thereafter.
EURUSD is working on a larger-degree corrective wave since printing the 1.1035 high. The structure could be unfolding as a triangle or an expanded flat before the next leg resumes higher. If a triangle is unfolding, the currency could be into its last wave, which is expected to terminate close to 1.0735. In case of an expanded flat, prices could slip below 1.0500 going forward.
EURUSD is currently working up on its recent bearish drop between 1.1010 and 1.0860. The Fibonacci 0.618 retracement of the above is passing through 1.0945 which should prove to be a strong resistance. The bears will remain poised to come back in control if prices manage to reach there and drag through the 1.0700-20 zone soon.
Trading idea:
Potential drop towards the 1.0700-50 zone to resume.
Good luck!
