Technical outlook and chart setups:
The EUR/USD pair dropped lower to the level of 1.0560 during the day before pulling back towards 1.0585. There is no doubt that pair remains vulnerable to bears, but it is too late to initiate fresh short positions here. Moreover, a bullish divergence seen in the higher time frames (not shown), indicates that a turn is near. We need to see a breakout above at least 1.0640 before turning bullish, and trade with confidence. It is hence recommended to remain flat now. Immediate support is seen at 1.0550, while resistance is seen at 1.0640.
Trading recommendations:
Remain flat looking for an opportunity to initiate long positions.
Good luck!
