EURUSD climbed above the 0.9980-99 levels on Tuesday before finding resistance and pulling over. The single currency pair has lost almost 100 pips and is seen to be trading around 0.9915 after hitting intraday lows at 0.9898. The trading instrument might be carving an engulfing bearish candlestick pattern on the daily chart and a confirmation would trigger a selloff towards 0.9700 at least.
EURUSD has rallied roughly 500 pips from its swing lows at 0.9535 and it is likely to produce a meaningful pullback before rallying further. The counter-trend rally might be still incomplete and prices could reach 1.0200 at least, which is initial resistance as marked on the daily chart. The overall downtrend is expected to resume thereafter.
EURUSD might have carved its initial lower-degree upswing between 0.9535 and 0.9999 as seen on the daily chart. A pullback is possible towards the 0.9700-10 area, which is the Fibonacci 0.618 retracement of the above rally, before the pair resumes its push higher towards at least 1.0200 and 1.0500. The potential remains for a push through 1.0650, which is the Fibonacci 0.382 retracement of the previous drop between 1.2350 and 0.9535.
Trading idea:Potential rally towards 1.0650 against 0.9500
Good luck!