Technical outlook:
EUR/USD continues to pullback after testing the trend line resistance around 1.1483 early this month. The currency was trading close to the support zone around 1.1270 at the time of writing. Bulls are expected to remain in control until prices stay above the 1.1186 mark. Near-term upside potential remains through 1.1700 before pulling back lower.
EUR/USD rallied through an upswing between 1.1186 and 1.1483. The recent boundary which is being worked upon could be between 1.1235 and 1.1483. Prices are trading just below the Fibonacci 0.618 retracement of the above mentioned boundary, which is around the 1.1325 mark (not shown here). High probability remains for a bullish turn towards 1.1500 and higher.
EUR/USD needs to break above the 1.1483 mark to accelerate further and also break into the buy zone of the trend line resistance. Only a consistent break below 1.1186 would change the bullish scenario in the near term. Watch out for a potential higher low to be carved in the next few trading sessions before pair resumes the rally.
Trading plan:
Potential rally toward 1.1700 against 1.1150
Good luck!
