Technical outlook:
EURUSD rallied through the 1.0845-50 zone during the New York session on Tuesday before finding resistance again. The single currency pair is still trading close to 1.0840 at this point in writing as the bears prepare to regain control soon. Ideally, prices should stay below the 1.0930 interim resistance to keep the bearish view intact. The instrument is looking lower from here.
EURUSD is carving a larger-degree corrective phase since the 1.1035 highs registered on February 02, 2023. The first and second waves are in place at 1.0525 and 1.0930 levels respectively. The final wave should drag prices towards 1.2030 in the next few weeks to complete the corrective phase the retracement of its earlier upswing.
The lower-degree wave structure from the 1.0930 high is also looking constructive for the bears. It carved the first downswing towards 1.0712 on Friday last, producing an Evening Star candlestick pattern. Further, it has now pulled back towards the Fibonacci 0.618 retracement around 1.0845-50 as well. Be prepared for lower levels as long as 1.0930 remains intact.
Trading idea:
A potential drop towards 1.0230 against 1.1035
Good luck!
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