Technical outlook:
EURUSD tests 1.1690 before finding interim support in the past hour. The currency pair dropped through 1.1684 low over the last week before rallying toward 1.1750 levels, producing an Engulfing Bullish pattern on the daily chart. It is still holding above pattern low keeping the bullish structure intact. Watch out for a continued rally if 1.1680 holds, going forward.
Looking at the medium term wave structure, EURUSD might be carving a counter trend rally towards 1.12050 level. The Fibonacci 0.618 retracement of previous down swing is also passing through 1.2030-50 zone. High probability remains for a bearish reversal, if prices manage to push through the above resistance area.
In the near term, bulls are facing resistance around 1.1750, followed by 1.1855; while interim support is see around 1.1660 levels respectively. The overall larger wave structure is still looking bearish toward 1.1300, going forward. It is critical to stay above 1.1660 to keep the medium-term bullish structure intact.
Trading plan:
Potential rally toward 1.2050 against 1.1660.
Good luck!
