Technical outlook:
EURUSD sideways consolidation continues in the form of contracting triangle since printing 1.1383 highs. The single currency pair is trading close to 1.1320 levels at this point in writing, expected to find some resistance here. Prices are expected to drop one more time through 1.1280-90 zone before terminating the triangle consolidation. Bulls will remain inclined to be back in control thereafter.
EURUSD is now targeting 1.1690 resistance on the daily chart and a break above 1.1383 will accelerate as triangle breakout would be confirmed. Immediate price resistance is at 1.1690, while support comes in around 1.1160 levels respectively. Bulls remain poised to push higher but the bottom line remains 1.1186, which should hold.
The overall structure looks constructive for a meaningful rally ahead as EURUSD has found support around 1.1186, just below the Fibonacci 0.618 retracement of the previous rally between 1.0636 and 1.2350 levels respectively. Only a consistent break below 1.1186 will void the above structure and bring back bears into play.
Trading plan:
Potential rally through 1.1690 against 1.1150.
Good luck!
