Technical outlook:
EUR/USD has managed to produce an engulfing bullish candlestick patter over the weekly chart after dropping lower towards 1.0630/40 levels earlier. This could be a bullish reversal we have been calling for since last several weeks and the trend might change for the next several months to follow. Aggressive traders may want to go long against 1.0636 levels while a more conservative approach is to wait until resistance at 1.1500 has been taken out. This would confirm that bulls are back in control and buying dips can be considered a safe trading strategy. A two-year long trend line needs to break to trade with confidence on the long side. Interim support at this point in writing is at 1.0636 while resistance is at 1.1500 levels respectively. The overall structure remains bullish until 1.0636 support holds and short term potential target is seen above 1.1500 levels.
Trading plan:
Initiate long positions between 1.0830 and 1.0950, stop at 1.0636 and target is 1.1500, 1.2000.
Good luck!
