Technical outlook:
EUR/USD dropped through the 1.0540/45 range during the Asian session on Thursday. The single currency pair is seen to be testing a short-term trend line support, which is connecting October 2023 lows. The probability remains for a bullish bounce from here and a push towards 1.0750 at least. A push above 1.0600 would confirm a potential lower high is in place.
EUR/USD is unfolding a corrective wave after printing lows at 1.0450 on October 04, 2023. The single currency pair has carved an upward cycle and is on its way to producing another higher low around the 1.0540-50 area. The high probability remains for another high towards 1.0750 at least if the bulls manage to come back in control from here.
EUR/USD is also testing the Fibonacci 0.618 retracement of its recent upswing between 1.0480 and 1.0690 levels, not projected on the chart. Immediate support is seen through 1.0520 and the bulls would be poised to come back in control till prices stay higher. Also, note that the drop from 1.0694 is corrective and hence, the probability of a turn remains high.
Trading idea:
A potential rally towards 1.0750 to resume soon.
Good luck!
