Technical outlook:
EURUSD dropped through 1.0772 low during the Asia Session on Monday. The single currency pair is seen to be trading close to 1.0775 at this point in writing and is expected to resume its rally from here anytime soon. Bottom line is that prices should stay above 1.0761 mark to keep the bullish structure intact.
EURUSD remains at a critical juncture of a five year old support trend line (not seen here) close to current levels. A break of the trend line support will open the door to test 1.0600, while a bullish bounce will trigger a huge rally towards 1.2000 levels respectively. A push above 1.0930 from here will confirm that trend has reversed for good.
EURUSD bulls will be poised to break above 1.1200 initial resistance to confirm they are back in control. Also note that the recent swing lows around 1.0759 has been accompanied by a strong bullish divergence on the daily RSI. High probability remains for a bullish reversal from current levels (1.0775).
Trading plan:
Potential rally through 1.1200 and 1.1500 against 1.0700
Good luck!
