EUR/USD Technical Analysis: Potential Drop Towards 1.0500 in Near Term"
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Technical outlook:
EURUSD bounced off the 1.0640 lows last week and pushed higher towards 1.0779 on Friday as projected earlier. The bears were quick to take this opportunity and came back in control as the trajectory reversed towards 1.0700-10 to close the week. The single currency pair is seen to be trading close to 1.0700 at this point in writing as the bulls prepare to push towards 1.0760 at least in the near term.
EURUSD is unfolding an expanded flat corrective wave at a larger degree from the 1.1035 highs earlier.
The first wave lower terminated around 1.0520, while the second wave rallied through the 1.1095 highs before terminating. Since then, the last wave has been underway and is projected to terminate around 1.0500 in the next few trading sessions. EURUSD might have terminated a lower-degree corrective rally at 1.0779 on Friday or it could extend up to the 1.0820-30 area in the next 1-2 trading sessions.
The instrument could be trapped in a range for a few sessions before the bears are back in control to drag the price lower towards 1.0500. Watch out for intraday resistance around the 1.0820-30 zone.
Trading idea:
A potential drop towards 1.0500 is possible in the near term.
