Technical outlook:
EUR/USD has been drifting sideways within a range between 1.1450 and 1.1400 since the last two trading days. The euro/dollar pair might be preparing to push through the 1.1500-20 mark before producing a meaningful correction. Bulls are looking poised to remain in control as long as prices stay above the 1.1120 mark.
EUR/USD has carved a lower degree upswing between 1.1120 and 1.1483 over the last week. The entire 350 pip boundary is being broken upon as prices are expected to retrace through the 1.1260-70 zone before resuming higher again. Note that 1.1260 is close to the Fibonacci 0.618 retracement of the above upswing as shown here on the daily chart.
EUR/USD keeps its larger degree wave structure intact since the upswing between 1.0636 and 1.2350 was retraced to its Fibonacci 0.618 levels as highlighted on the chart here. A Morning Star candlestick pattern was also confirmed alongside bullish divergence on the RSI as discussed earlier. If this scenario comes true, the is likely to rise above the 1.2350 mark in the next several weeks.
Trading plan:
Poteential rally through 1.1700 and higher against 1.1100
Good luck!
