Technical outlook:
EUR/USD dropped to 1.0941 levels last Friday. A complex corrective structure seems to have terminated at 1.0941 lows and bulls are ready for a rally again. Please note that this drop was duly expected and it has been discussed here to be prepared for a bottom around the 1.0930 levels, before the rally resumes. Also note that EUR/USD is finding support at the 0.786 retracement of the entire rally between 1.0879 and 1.1240 earlier. Furthermore, the fibonacci extension of the corrective drop also converges around the same levels. High probability remains for a bullish bounce from the current levels around 1.0950 levels. The overall bullish structure still remains unchanged as EUR/USD is trading above the 1.0879 support. Going forward, the single currency pair is expected to push towards 1.1500 and 1.1800 respectively.
Trading plan:
Remain long for now, stop at 1.0879, target is 1.1500, 1.1800
Good luck!
