Technical outlook:
EURUSD slipped through 1.1270 on Tuesday before finding support again. The single currency rallied through 1.1320-25 and is now trading around 1.1304 at the time of writing. Please note that 1.1270 was the Fibonacci 0.618 retracement of the recent upswing between 1.1235 and 1.1386 levels respectively (not shown here). High probability remains for a bullish turn from here.
EURUSD bulls are looking poised to push higher towards 1.1500 and 1.1700 in the near term. Prices should remain above 1.1222 for the above bullish structure to remain intact. A drop below 1.1222 and subsequently 1.1186 will open the door for a test of 1.1160 support on the daily chart. We can expect a bullish reversal thereafter.
EURUSD had earlier rallied between 1.0636 and 1.2350 carving a larger upswing. This was retraced by a corrective drop toward 1.1186, which is just below the Fibonacci 0.618 level of the above rally. If the above structure holds good, EURO bulls might be inclined to remain in control from here on, pushing higher through 1.2350 in the next several weeks.
Trading plan:
Potential rally through 1.1700 against 1.1150.
Good luck!
