Technical outlook:
EURUSD drops to intraday potential support zone around 1.1550-60 before bouncing back. The currency pair is seen to be pushing higher around 1.1580 mark at this point in writing. Bulls are expected to stay in control from here or drop to 1.1550 mark before resuming higher again. The recent swing being worked upon is located between 1.1514 and 1.1610 level respectively.
The Fibonacci 0.618 retracement of the above is seen passing through the 1.1550 mark. Hence, the probability of a bullish reversal remains high if EURUSD drops through the 1.1550 mark today or tomorrow. If the above structure unfolds accordingly, bulls will be inclined to push prices higher through at least 1.1750 and 1.1850 in the near term.
The larger wave structure for EURUSD also remains bullish until prices stay above 1.1514. The corrective decline from 1.2350 seems to be complete around the 1.1500 level. We expect bulls to be back in control on a push above the 1.1700 zone going forward. On the flip side, a break below 1.1514 will delay the start of a sustained rally.
Trading plan:
Potential rally towards 1.1850 and 1.1950 against 1.1450.
Good luck!
