Technical outlook:
EUR/USD slipped through the 1.1020 lows during the late Europe session on Tuesday, falling in line with our earlier forecast. The single currency pair is seen to be trading close to 1.1040 at this point in writing and could drop towards 1.1000 before resuming higher. The expected retracement from 1.1275 is near completion, hence could be good to book profits on short positions.
EUR/USD is currently testing the previous resistance-turned support zone close to 1.1000 as projected on the daily chart here. A bullish turn from the current levels remains highly probable going forward. Please note that strong support is now seen at 1.0830 and the bulls are expected to remain in control till prices stay above that.
EUR/USD has further carved a lower-degree upswing between 1.0830 and 1.1275 levels in the past few trading sessions. It is being retraced now and prices are close to testing the Fibonacci 0.618 level around 1.1000. The bulls will remain inclined to enter the market again if prices manage to drop through the above zone.
Trading idea:
A potential rally towards 1.1500 to resume soon.
Good luck!
