Technical outlook:
EURUSD dropped through 1.0880 mark post FOMC late on Wednesday, before finding support. The single currency pair has managed to rally above 1.0910 mark and is expected to continue higher going forward. EURO bulls need to hold prices above 1.0800 mark to keep the structure intact. Watch out for a potential Morning Star candlestick pattern on daily chart.
EURUSD is likely carving a higher low around 1.0870 mark as bulls remain poised to be back in control from here. The currency has produced a doji candlestick pattern yesterday indicating a potential reversal ahead. The recent upswing being worked upon is between 1.0800 and 1.1185 levels and prices have dropped through fibonacci 0.618 retracement on Wednesdy.
High probability remains for a bullish reversal from current levels (1.0910-15) as bulls remain poised to take out initial resistance around 1.1500-50 zone. The break above 1.1500 will also confirm that bulls have registered themselves and are back in control. Furthermore its resistance trend line of one year will also be broken confirming further upside.
Trading plan:
Potential rally towards 1.1500 against 1.0700
Good luck!
