Technical outlook:
EUR/USD might have completed its corrective drop that had begun from 1.1150 levels. A bottom might be in place at 1.0775 on Friday and that EUR/USD might begin to rally towards 1.1500 levels. Initial resistance is seen 1.0866 levels and a break higher would confirm that bulls are back in control. Also, a push above the resistance trend line would be quite encouraging for bulls to continue further. On the flip side, if prices drop below 1.0775, the next support should come towards 1.0745 levels, which is also the fibonacci 0.786% retracement of the previous rally. The overall bullish structure remains intact until prices stay above the 1.0636 levels. Trading point of view, it remains good to hold on the long side with risk at 1.0636 respectively. Please be prepared for a marginal low below 1.0775 levels before the rally could resume.
Trading plan:
Remain long and add further @ 1.0745, stop @ 1.0636, target is 1.1500
Good luck!
