EURUSD has been probing the 1.0890 mark since the early Asian session on Thursday. It is lagging behind its counterpart US dollar index, which has surpassed its previous swing high and registered a new high at 103.25. It could be possible that the last leg in EURUSD might be complete as a truncation. It is a good idea to remain cautiously short for now but the bulls might be poised to come back in control soon.
EURUSD has been producing a larger-degree corrective wave after hitting the 1.1035 highs in February 2023. Furthermore, the corrective pattern unfolding is that of a contracting triangle, which is probably into its last wave towards 1.0750. The bulls could be preparing to come back in control either from current levels (1.08990) or from 1.0750 going forward.
EURUSD needs to break below 1.0845 to accelerate further towards 1.0750. If a bullish bounce is produced now around 1.0890, the single currency pair could resume its rally from here itself confirming a truncated wave. Also, note that 1.1010 remains the key to holding short positions. Only a break higher will rule out a further downside.
Trading idea:A potential drop to 1.0750 against 1.1010. If broken, we might have to reverse positions.
Good luck!