Technical outlook:
The EUR/USD pair dropped to 1.1055 intraday, before pulling back to 1.1090 levels, as expected and discussed yesterday. It should be noted that EUR/USD has bounced from the fibonacci 0.382 retracement of a rally between 1.0879 and 1.1180 respectively. It is possible that the correction might be over, and euro bulls are back in control to push prices higher above 1.1180, going forward. On the flip side, possibility remains for a much deeper correction towards the fibonacci 0.618 retracement around 1.1000 levels, before the corrective drop could be declared complete. For the short term at least, a rally is expected towards 1.1130. We shall re-evaluate then and decide the next course of action, but a safe trading strategy could be to buy on dips, against 1.0879.
Trading plan:
Remain long against 1.0879, target is 1.1500 at least.
Good luck!
