Technical outlook:
EUR/USD reversed sharply after hitting a 1.0641 high on Thursday, erasing all gains from Wednesday. The pair is seen to be trading around 1.0530 at this point in writing. It is expected to resume its rally soon. The bottom line for bulls to come back in control is 1.0470 interim support, which should remain intact.
EUR/USD produced a corrective rally between 10470 and 1.0641 as seen on the smaller timeframes (not shown here). The probability remains that bulls have managed to carve a lower high around 1.0641 and that bears are back in control to drag the pair below 1.0470. If so, prices should drop further towards 1.0350 soon.
Alternatively, the corrective rally is still unfolding in a complex manner since the 1.0470 low. If the alternative scenario is correct, EUR/USD is preparing to rally to the initial resistance of 1.0930 as marked on the daily chart. Keep in mind that potential remains for a push through the 1.1200 mark. Traders might remain cautiously bullish from here.
Trading plan:
Potential rally through 1.0930 against 1.0330
Good luck!
