Technical outlook:
EUR/USD could be preparing for another round of sell-off towards 1.0730 and up to 1.0600 in the near term. The single currency pair is seen to be trading close to 1.0820 at this point in writing after having tested the 1.0835-40 zone earlier. A break below 1.0800 will confirm and accelerate towards the above levels.
EUR/USD seems to be in a corrective phase after hitting a 1.1275 high in July. The first corrective wave is underway and projected to terminate around 1.0600, close to the Fibonacci 0.382 retracement of its earlier larger-degree upswing. The second wave within correction is expected to reach 1.1010 before the final leg resumes lower again.
EUR/USD is currently progressing toward 1.0600 as projected on the daily chart. Ideally, prices should stay below 1.0900, but a break higher would only mean that the corrective wave has arrived a bit early. In that case, we could witness a rally to unfold towards 1.0990 before prices turn lower again.
Trading idea:
A potential drop to 1.0730 and 1.0600 to resume soon.
Good luck!
