Technical outlook:
EURUSD dropped below the 1.1108 low on Thursday before finding support. The single European currency is seen to be trading around 1.1220 at this point of writing and is expected to rally further.
EURUSD needs to clear at least the 1.1300 mark to confirm that a major low is in place around 1.1108. The recent drop has just tested its previous swing low around 1.1121. Hence, high probability remains for a reversal from here. On the flip side, a consistent break below 1.1100 will open the way towards 1.1000.
Also note that the Fibonacci 0.786 retracement of the entire rally between 1.0636 and 1.2350 is also seen through 1.1000. If not from the current levels, EURUSD is expected to bounce from the 1.1000 mark going forward. Traders might be preparing to initiate fresh long positions from here and look to add more around 1.1000.
Trading plan:
A potential rally is expected towards 1.1500 against 1.0636.
Good luck!
