Technical outlook:
EUR/USD had rallied through 1.1019 highs last week before pulling back lower again. An intermediary resistance at 1.0990 levels has been taken out as well and hence a corrective drop was expected. Please note that recent upswing is between 1.0730 and 1.1019 respectively and the fibonacci 0.618 retracement is seen towards 1.0837 levels. A drop to those levels would attract good support and EUR/USD may resume its rally towards 1.1500 thereafter. Further, EUR/USD can drop to test the back side of resistance trend line below 1.0800 levels, which should act as support now. A bullish reversal there remains high probability for the next leg higher towards 1.15/1.16.
Trading plan:
Remain long, stop below 1.0636, target is 1.1500
Good luck!
