Technical outlook:
EURUSD rallied thrugh 1.1366-70 levels on Tuesday before pulling back. The single currency trades below 1.1330 at this point in writing and is expected to slip further towards 1.1250-60 mark at least. Bulls will remain inclined to be back in control thereafter and push through 1.1700 and 1.2000 going further.
EURUSD needs to stay above 1.1120 intermediary support to keep the above bullish structure intact. The pair is working on its recent upswing between 1.1120 and 1.1500 level respectively. Also note that fibonacci 0.618 retracement of the above upswing is seen through 1.1250 mark. Hence probability remains high for a bullish turn if prices manage to reach there.
EURUSD is expected to carve a meaningful higher low within the range 1.1200 and 1.1250 in the next 2-3 trading sessions. It might be caving a potential Right Shoulder of a conventional inverted Head and Shoulder pattern with Head around 1.1120, Left Shoulder around 1.1200 and Neck line broken at 1.1500 levels respectively.Trading plan:
Potential rally through 1.1700 against 1.1100
Good luck!
