Technical outlook:
EUR/USD is still poised to drag the price lower towards 1.0600 in a few trading sessions. The single currency pair is seen to be trading close to 1.0730 at the time of writing as the bears are preparing to come back in control soon. Immediate price resistance is seen around 1.0950 and only a break higher will confirm that the bottom is in place.
EUR/USD is progressing in a larger-degree corrective phase since hitting highs around 1.1275 in July. The single currency is about to terminate its initial wave lower towards the 1.0600-30 area. Also, note that 1.0630 is close to a major price support as seen on the 4H chart here. Furthermore, the Fibonacci 0.382 retracement of the previous larger-degree upswing is passing across 1.0630.
Hence, the potential for a bullish turn remains high at around 1.0600. The pullback rally could push prices through the 1.1000-40 zone before the final wave resumes lower again. The overall drop could terminate through the 1.0200-50 area to complete the entire corrective phase. The bulls would be poised to be back in control thereafter.
Trading idea:
A potential short-term rally to materialize soon toward the 1.1000-40 range.
Good luck!
