Technical outlook:
EURUSD produced a bullish reversal on Friday after testing just below 1.1200 mark. The Morning Star on the daily chart confirms the trend reversal towards 1.2350 in the next few weeks. Bulls must hold prices above 1.1186 mark for the above structure to remain valid. Immediate price resistance according to price action on the daily chart is seen at 1.1700-10.
A break above 1.1700 will confirm that bulls are poised to remain in control as the next leg proceeds through 1.2350 and higher. Also note that prices have bounced higher from the Fibonacci 0.618 retracement of previous rally between 1.0636 and 1.2350. High probability remains for a meaningful bottom to be in place at 1.1186 now.
On the flip side, if 1.1186 breaks down, EURUSD could test 1.1160 and 1.1000 levels before finding support again. In that case, we shall remain aside and look for a clear trade direction. At the time of writing, bulls continue to remain in control and immediate price target seems above 1.1375. Risk is just below the 1.1186 potential support.
Trading plan:
Potential rally toward 1.2350 against 1.1186.
Good luck!
