Technical outlook:

EURUSD rallied through the 1.0875 lower high during the late New York session on Tuesday. Please note that the 1.0870-90 zone was marked as intraday resistance in our discussion earlier. Prices did respond in a bearish manner and could resume lower from here towards 1.0400 in the near term. The instrument is seen to be trading at 1.0865 at this point in writing as the bears prepare to firm their grip.

EURUSD has most likely completed its larger-degree rally, which began from the 0.9535 low, at the 1.0929 high last week. The currency pair has also dropped through the 1.0800 low since then and is currently producing a pullback. Immediate resistance is seen at 1.0913, followed by 1.0930; while support comes in around 1.0770, followed by 1.0481 levels respectively.

A turn here will target 1.0770 followed by 1.0481 levels, confirming the bears are back in control. Also, note that the Fibonacci 0.618 retracement is seen passing through 1.0100 (for the entire rally between 0.9535 and 1.0930). We expect a bullish reversal if prices manage to drop lower and reach 1.0100 potential support. Bearish pressure is likely to remain in the near term.

Trading idea:

Potential bearish move against 1.1000

Good luck!