Technical outlook:
EURUSD dropped through 1.1108 mark over the last week fuelled by the geopolitical situation. Technically, the push lower is a test of the previous swing low around 1.1121 and potential double bottom formation. Prices need to hold and stay above 1.1108 levels for bulls to come back in control in the near term. Be prepared for yet another shallow low though.
EURUSD needs to break above 1.1500 mark to confirm a double bottom bullish reversal and that bulls are here to stay longer. High probability remains for a push through 1.2000 and 1.2350 mark in the next few weeks. On the flip side, if prices consistently cbreak below 1.1108 mark, it would open the door towards 1.1000 before support comes in.
EURUSD is still within the vicinity of fibonacci 0.618 retracement of the entire rally between 1.0636 and 1.2350 levels. Bulls will remain inclined to be back in control from current levels (1.1160) and push through 1.1500 mark in the near term. Watch out for a push above 1.1300 levels to confirm further rally through 1.1500-40.
Trading plan:
Potential rally through 1.1500 against 1.1000
Good luck!
