Technical outlook:
EURUSD continues to test its recent swing low around 1.1680-90 zone after having produced an Engulfing Bullish candlestick pattern over the last week. The structure continues to remain bullish against the 1.1660 mark. The pair could resume its rally to the 1.2050 level soon. Only a sustained break below 1.1660 will void the bullish outlook.
EURUSD medium-term outlook remains higher to 1.2050, which is also the Fibonacci 0.618 retracement of the drop between 1.2266 and 1.1660 respectively. Immediate price support is around 1.1660, while resistance is at 1.1750, followed by 1.1855 respectively. Bears would be poised to comeback strong after the counter trend rally is complete.
Looking at the larger wave structure, EURUSD remains bearish against 1.2350 high, which was carved on January 6. The currency pair is targeting 1.1300 mark in the next few weeks, which is fibonacci 0.618 retracement of the entire rally between 1.0636 and 1.2350 respectively.
Trading plan:
Potential rally towards 1.2050 against 1.1660.
Good luck!
