Technical outlook:
EURUSD has now dropped to the anticipated support area between 1.1750-60 and is expected to produce a bullish bounce here. The corrective drop, which began from 1.1900 levels earlier, seems to be now complete. Buls will be poised to take control back from around 1.1750-70 region and push towards 1.2050-1.2100 going forward.
EURUSD has dropped to Fibonacci 0.618 retracement of the recent upswing between 1.1660 and 1.1900 (not highlighted here). If a bullish bounce is produced, the next leg will be higher to 1.2050, which is also Fibonacci 0.618 retracement of the drop between 1.2266 and 1.1660 levels respectively. The counter trend rally might be unfolding its last leg higher.
Overall trend remains bearish against 1.2350 mark but the intermediate trend looks bullish towards 1.2050. The pair is seen to be trading around 1.1765 levels at this point in writing and is expected to turn higher soon. Immediate support is 1.1660, while resistance comes in around 1.1900 levels respectively.
Trading plan:
Potential rally towards 1.2050 against 1.1660.
Good luck!
