Technical outlook:
EURUSD broke above 1.1180 interim resistance which means that bulls are in control. The pair is likely to print new highs to 1.1500. Keeping the above medium term picture in mind, we would bring in the short term probabilities which are pointing towards a potential correction lower. First, it is recommended to take more profits on the long positions initiated earlier and buy again on dips. The expected correction from these levels could be shallow and find support around 1.1100 levels at least before the rally resumes. On the flip side, if the entire corrective structure that began from 1.1180 earlier is not yet complete, we can witness a sharp drop towards 1.0980 levels again before a major bottom is in place. A break below 1.1105 levels could be seen as the first sign of a continued drop and break below 1.1040 further increases our confidence towards the same. Please avoid initiating aggressive short positions since the overall trend remains bullish and buying on dips is recommended.
Trading plan:
Keep buying on dips, stop at 1.0879, target is 1.1500
Good luck!
