Technical outlook:
EURUSD had pushed higher close to 1.1500 mark on Thursday before finding resistance and revering sharply lower. The single currency pair is trading close to 1.1415 mark at this point in writing and is expected to produce a meaningful correction through 1.1350 in the near term. Bears are looking inclined to remain in control as long as prices stay below 1.1500 levels.
EURUSD has carved an upswing between 1.1120 and 1.1495 taking out the daily price resistance just ahead of 1.1500 mark.After registering themselves, bulls would want to take a pause as prices drop through 1.1350 and 1.1250 levels in the next few trading sessions.Once the correction is over, bulls should be back in control pushing prices through 1.1700 and higher.
EURUSD has already rallied close to 480 pips in the last few trading sessions. The boundary needs to be retraced before its rally resumes. Please note that 1.1250 is also fibonacci 0.618 retracement of the entire rally between 1.1120 and 1.1495 respectively. Hence probability remains high for a bullish turn is prices drop through that zone.
Trading plan:
Potential drop to 1.1250 first then rally towards 1.1700 against 1.1100
Good luck!
