Technical outlook:
EURUSD has dropped to intraday low of 1.1571 on Monday Europe Session. The pair has found some support and is trading around 1.1580 mark at the time of writing. A drop to 1.1550 remains possible since it is the Fibonacci 0.618 retracement of the recent rally between 1.1524 and 1.1640 levels respectively. The short term outlook remains bullish until 1.1524 holds well.
EURUSD is working on the boundary between 1.2266 and 1,1524 as bulls prepare for a counter trend rally towards 1.1950 mark. Please note that an engulfing bullish candlestick pattern has been in carved over the last week. High probability remains for bulls to be back in control from around 1.1550-70 support zone.
EURUSD is facing immediate resistance around 1.1640, followed by 1.1750 and higher, while support is seen around 1.1500 levels respectively. A break above 1.1640 will confirm that bulls are back in control and are here to stay longer. Traders might be looking to initiate positions on the long side with potential risk just below the 1.1500 mark.
Trading plan:
Potential rally towards 1.1950 against 1.1450.
Good luck!
