Technical outlook:
The EUR/USD pair was not giving up lower until major support break yesterday at 1.1550 levels. The pair managed to take out to fresh lows at 1.1510 levels before bulls took over the rest of the day. As you can see on the daily chart presented here, the pair is now forming a clear engulfing bullish pattern, indicating that the next few days should remain bullish through 1.1950 levels at least. Once prices does manage to test 1.1950-1.2050 resistance zone, we can expect a resumption of bearish trend towards 1.1100-1.1200 levels respectively. Looking into the wave structure, the pair has now managed to complete wave (3) of a larger degree as labelled here and most like to push higher towards wave(4) which should terminate around 1.1950 levels at least. Interim support remains strong at 1.1500 levels now.
Trading plan:
Aggressive traders remain long with stop below 1.1500 levels.
Fundamental outlook:
Watch out for the German Consumer Price Index at 08:00 AM EST and US GDP Annualized at 08:30 AM EST.
Good luck!
