Technical outlook:
EUR/USD rised through the 1.0720 highs on Tuesday before pulling back lower again. The single European currency is seen to be trading close to the 1.0680 mark as traders await the fundamental trigger of Fed interest rate decision to be out later at 02:30 PM EST. The charts are already suggesting a pullback rally towards at least 1.0800 .
EUR/USD has terminated the first leg of its larger degree corrective phase around the 1.0630 mark. Also note that fibonacci 0.382 of its larger degree upswing has been tested along with the price support at 1.0635. Ideally, prices should unfold the second leg of the corrective phase higher towards 1.0800 and potentially to 1.1000 levels respectively.
EUR/USD has already carved a lower degree upswing between 1.0630 and 1.0720 as seen on the H4 chart here. High probability remains for a corrective drop towards the 1.0630-50 zone before the rally resumes towards 1.0800 in the near term. Also note that trendline resistance is parring through 1.0800 and a break higher would encourage further strength.
Trading idea:
Potential rally towards 1.0950 might have resumed.
Good luck!
