Technical outlook:
EURUSD has slipped through 1.1380-90 zone as expected and discussed here on Monday. The single currency pair has carved a potential low around 1.1381 and is now trading around 1.1393 mark. The currency pair has tested its past resistance turned support now and probability remains for a resumption of its rally towards 1.1500 and 1.1700 levels in the near term.
EURUSD could also drop to 1.1350 mark, which is the Fibonacci 0.618 retracement of recent upswing between 1.1270 and 1.1386 respectively. Either way, watch out for bulls to come back strong from here or from 1.1350 mark. Ideally, prices should stay above 1.1270 level to keep the bullish structure intact.
EURUSD faces immediate price resistance around 1.1690 while support comes in at 1.1270, followed by 1.1235 levels respectively. Only a break below 1.1235 and further would void the bullish setup. Watch out for 1.1350 for a strong bullish reversal going forward.
Trading plan:
Potential rally to 1.1700 against 1.1186
Good luck!
