Technical outlook:
EURUSD dropped to fresh lows around 1.1530 mark on Wednesday before bouncing back. The currency pair needs to break above 1.1640 levels, which is the short term resistance, to confirm a meaningful bottom is in place. Bulls would be poised to be back in control as a major support has been taken out around 1.1600, the November 2020 low.
EURUSD is trading extremely close to the Fibonacci 0.50 retracement of the entire rally between 1.0636 and 1.2350 levels. It is quite possible that bears might drag towards 1.1500 handle before giving in to bulls. Immediate price support is around 1.1500, while resistance is at 1.1640, followed by 1.1750 and higher.
The recent boundary which could be worked upon is between 1.2266 and 1.1530 level. A minimum retracement could push prices towards 1.1900-50 handle. Probability also remains to test 1.2000 level before resuming lower again. Traders might be waiting for a break above 1.1640 to initiate potential long positions.
Trading plan:
Potential rally towards 1.1900-50, against 1.1450.
Good luck!
