Technical outlook:
EUR/USD might have carved a higher low at 1.0981 earlier and seems to be progressing higher printing higher highs and higher lows. As highlighted here on the 4H chart view, the support zone is still around 10940/1.0981 levels and hence probabilities still remain for a drop there before the rally could resume. A safe trading strategy could be to again book partial profits on long positions taken earlier and wait for a drop towards the support zone, to buy again. Intermediary support is seen at 1.1040 levels and a break below that would confirm a further drop to 1.0980/40 levels respectively. On the flip side, a continued push above 1.1181 confirms that bulls are in total control and the price is heading towards 1.1500 and higher. Due to bearish divergences seen right now, it is not advisable to open fresh long positions around current price at 1.1128/30. Bottom line for EUR/USD remains buying on dips, until prices stay above 1.0879 levels.
Trading plan:
Remain long and buy on dips with stop at 1.0879, the target is 1.1500
Good luck!
