Technical outlook:
EUR/USD has finally produced a Morning Star bullish candlestick pattern on the daily chart after printing lows around 1.1186. This could be a potential trend reversal signal as bulls remain inclined to push through the 1.1700-10 mark in the medium term. The single currency pair seems to be out of woods now as bulls have regained control.
EUR/USD faced immediate resistance at 1.1385, followed by 1.1700, while support is seen around 1.1160 . A break above 1.1385 will confirm a trend reversal and that bulls are back in control. Also note that the price found support around the Fibonacci 0.618 retracement of the previous upswing between 1.0636 and 1.2350.
The overall trend remains upward until the price stays above 1.1000 going forward. Only a consistent break lower will open the door to test 1.0636,a low logged on March 2020. Traders are looking poised to hold fresh long positions with minimum upside target of 1.1700.
Trade plan:
Potential rally through 1.1700 against 1.1150
Good luck!
