Technical outlook:
EURUSD dropped close to 1.1300 mark intraday on Monday and has now pulled back through 1.1315 mark. The above drop was projected and expected in our discussions last week as potential still remains for a drag toward 1.1250-60 mark. The single currency pair would resume its rally thereafter since 1.1250 is close to fibonacci 0.618 retracement of the earlier rally as depicted here.
EURUSD has carved a lower degree upswing between 1.1120 and 1.1499 levels earlier. In the process, it has taken out initial resistance close to 1.1500 level. Prices are currently retracing the above boundary and is expected to find support around 1.1250 before bulls are back in control. Ideally prices should stay above 1.1120 going forward.
EURUSD had carved a larger degree upswing between 1.0636 and 1.2350 earlier as shown on the daily chart here. The entire rally was retrced lower through fibonacci 0.618 levels around 1.1120 as marked here. High probability remains for a rally from current levels and push through 1.1700 at least in the next several weeks.
Trading plan:
Potential rally through 1.1700 against 1.1100
Good luck!
