Technical outlook:
EUR/USD is looking to break higher towards 1.1500 and 1.1700 after it carved a meaningful low around 1.1222 on Wednesday. The single currency pair rallied through the 1.1350-60 zone, taking out interim resistances around 1.1320 and 1.1350. A corrective drop might be unfolding soon towards 1.1275-80 before the rally could be resumed.
EUR/USD has just produced an upswing between 1.1222 and 1.1360 to be worked upon. Bulls might take a pause as prices retraced to the 1.1275-80 zone, which is close to the Fibonacci 0.618 retracement of the above upswing (not see here). Traders might be inclined to initiate fresh or add more long positions around the 1.1275-80 zone.
The currency might have carved a meaningful higher low around 1.1222 on Wednesday and prices should ideally stay above that mark. Only a break below 1.1186 could void the current bullish scenario and open the door to test the 1.1000 support level. EUR/USD remains a good candidate to be bought on dips going forward.
Trading plan:
Potential rally towards 1.1500-1.1700 against 1.1150
Good luck!
