Technical outlook:
The EUR/USD pair is trading at around 1.0950 at this point in writing, looking to retrace lower towards 1.0912/30 before resuming its rally. The single currency has taken out initial resistance at 1.0960 which was wave iv of a lesser degree (not labelled here). This could be the first confirmation of a potential bullish reversal ahead. There is still a lot more needed to instill further confidence on the above structure but the minimum requirement looks to be complete. Also note that fibonacci retracement and supports come in 1.0912 and 1.0930 levels, along with the back side of the resistance trend line. With the above convergences, a drop back between 1.0912/30 seems to be an ideal setup, going forward. The entire rally from 1.0879 through 1.0965 could be the first wave at a lower degree. A break of 1.1110 unfolding into 5 waves would be considered as an ideal setup for bulls.
Trading plan:
Remain long or take partial profits. Enter buying again around 1.0912/30 levels, stop below 1.0879, a target is 11110.
Good luck!
