Technical outlook:
EURUSD dropped to yet another low around 1.1226 on Tuesday before pulling back. The single currency pair is trading close to 1.1250 at the time of writing and might drop to 1.1240 for intraday support. Bulls need to clear 1.1380 resistance on the daily chart to confirm that a meaningful bottom is carved and that they are back in control.
EURUSD is testing the Fibonacci 0.618 retracement zone around 1.1295-1.1300 as seen on the chart here. The price action still remains within vicinity of the above retracement and a bullish turn here could resume higher. It remains to be seen from where bulls are able to turn the trend higher again. Strong price support is seen around 1.1150-60 on the daily chart.
It is not shown here but the RSI on daily chart is indicating a bullish divergence scenario. This could be a potential trend reversal indication as bulls prepare to be back around 1.1220-30 zone. Going forward, potential remains for a push through 1.1700-10 levels and up to 1.2350 as well.
Trading plan:
Potential rally towards 1.2350 against 1.1150
Good luck!
