The exit of the EUR/USD from its range will set the tempo
From a technical analysis perspective, EUR/USD has been rocking between its 2015 low at 1.0462 and its 2020 low at 1.0637 since the start of the month. The outlook is technically neutral in the short term between these two limits, but the risk/reward ratio favors buying. Indeed, the 2015 trough is an extremely important price level close to which the exchange rate rebounded in 2017 and 2020.
A bounce above $1.0637 would pave the way for a EUR/USD bullish reversal in the short term which could extend to the symbolic threshold at $1.10. Conversely, a pullback below $1.0462 would pave the way for a continuation of the underlying downtrend, and the next support to watch would be the 2017 low at $1.0340.
Entry: Buy above $1.0640
Risk/reward ratio: >3
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