Technical outlook:
EURUSD slipped through fresh swing lows last Friday close to 1.1120 level. The currency pair has bounced off since then and is looking to carve a bullish Morning Star pattern on the daily chart. If successful, bulls will be back in control and target initial resistance at 1.1500 as depicted here on the daily chart. The pair is preparing to rally from here again.
EURUSD is also confirming a bullish divergence on the daily RSI as shown on the chart above. A bullish RSI divergence could be seen as potential trend reversal bringing back bulls into play. A similar situation was seen in January 2021 in the opposite direction when prices hit 1.2350 highs. High probability remains for a turn higher soon.
EURUSD is facing initial price resistance at 1.1500 and bulls will be keen to target that in the near term. Also note that prices are bouncing back from a past resistance turned support zone close to 1.1150. All the above are indicating potential trend reversal going forward.
Trading plan:
Potential rally toward 1.1500 and higher against 1.1100
Good luck!
