Technical outlook:
EUR/USD broke through the 1.0940 level on Thursday, taking out immediate interim resistance around 1.0920-30. The move was in line with our projection. It indicates further upside through 1.1200 at least. The pair has pulled back since the high and is seen to be trading close to 1.0850 at this point in writing.
EUR/USD has already carved an upswing between 1.0761 and 1.0938 in the past two trading sessions. Prices have dropped through 1.0830, which is close to the Fibonacci 0.618 retracement of the above rally. If the structure holds well, prices may stay above 1.0761. The pair may approach 1.1200, which is the next resistance level.
EUR/USD is preparing for a huge rally towards 1.1200, 1.1500 and up to 1.2000 in the next several weeks. The bottom line is that prices should hold above 1.0761 levels. A push above 1.0940 will further confirm and accelerate higher towards 1.1200 near term. Watch out for support to come in around 1.0820-25.
Trading plan:
Potential rally through 1.1200 and 1.1500 against 1.0636
Good luck!
