Technical outlook:
EURUSD finally produced the much awaited bullish bounce yesterday after printing intraday low around 1.1706/10 levels. The rally in the New York Session pushed the yellow metal beyond 1.1750 mark indicating a potential bottom in place. The counter trend rally that might have just started yesterday is set to gain traction towards 1.2050/70 levels in the next few weeks.
EURUSD seems to have carved a bearish boundary between 1.2266 an 1.1706/10 levels. The above boundary could be ideally retraced to reach up to fibonacci 0.618 mark around 1.2050 as depicted on the daily chart here. Also note that the back side of trend line is also passing through 1.2050, which could offer a formidable resistance.
EURUSD is trading around 1.1744/45 levels at this point in writing and is most likely to continue higher towards 1.2050 mark as a down Gartley or counter trend rally. Immediate support is seen at 1.1700/05, while resistance comes in around 1.1770, followed by 1.1900/20 and higher respectively. Bears might be back in control from 1.2050 zone going forward.
Trade plan:
Short term: Remain bullish with stop below 1.1650, target potential @ 1.2050
Medium term: Remain bearish with stop @ 1.2266, target @ 1.1300
Good luck!
