Technical outlook:
EURUSD is pulling back to carve a higher low above 1.1186 before resuming its rally. The recent boundary being worked upon is between 1.1186 and 1.1383 level as prices drop to fibonacci 0.618 retracement around 1.1250-60 zone (not shown on the daily chart). Please note that the above corrective drop may be deep but prices should hold above 1.1186 to keep the bullish count intact.
Once the correction is complete, EURO bulls will be back in action and push higher through 1.1690 level. Immediate price resistance is also seen at 1.1690, while interim support is around 1.1160 mark respectively. A break above 1.1690 will also confirm resistance trend line being broken as prices enter into the buy zone.
The overall wave structure continues to remain bullish with the bottom line around 1.1186. Only a break lower would bring back bears into play and open the door to re-test 1.1000 zone. The above bullish structure would be invalid in that case. For now, traders would be poised to initiate long positions against 1.1186.
Trading plan:
Potential rally through 1.1690 against 1.1150
Good luck!
