Technical outlook:
EURUSD has dropped through 1.1270 lows and is finding mild support as bulls remain poised to push higher towards 1.1500 mark. The currency pair has remained subdued after 1.1383 highs and should be looking to breakout post FOMC today around 02:00 PM EST. Please note that prices need to stay above 1.1186 to keep the bullish structure intact.
EURUSD has already bounced off the Fibonacci 0.618 retracement of the previous rally between 1.0636 and 1.2350 levels respectively. High probability remains for bulls to be back in control against 1.1186 lows. Immediate resistance is around 1.1690, while support is at 1.1160 levels respectively. A push through 1.1383 would accelerate further towards 1.1500 and 1.1700 mark respectively.
EURUSD structure continues to remain constructive for bulls with potential to push above 1.2350 mark. Only a break below 1.1186 consistently will open the door to drag further towards 1.1000 mark before finding support again. We remain optimistic for a bullish breakout for now.
Trading plan:
Potential rally towards 1.2350 against 1.1150
Good luck!
