Technical outlook:
EUR/USD rallied through a 1.0690 high during the New York session on Thursday only to find resistance as projected earlier. The single currency pair has eased off and is seen to be trading close to the 1.0655 level at this point in writing. If a potential lower top is in place at 1.0690, prices would reverse sharply from here and drag through the 1.0000-50 zone in the next few trading sessions.
EUR/USD has been drifting sideways for the last two weeks after printing the 1.0736 highs. It is likely that bears are going to come back strong since prices reversed from the 1.0690 mark. A break below 1.0570 is still required to confirm a lower top in place and accelerate further towards 1.0350 and the 1.0000-50 mark at least. Looking lower in the near term if 1.0736 holds well.
EUR/USD may also resume its larger degree downtrend, which began from the 1.2350 peak in 2021. If the structure holds, prices could drag below 0.9535 mark to complete the two year pattern before giving in to bulls. Either way, we are optimistic for a near term earish drop to at least 1.0350 from current levels before finding support.
Trading plan:
Potential drop against 1.0750
Good luck!
Relevance up to 03:00 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
