Technical outlook:
EURUSD dropped through 1.0460 in the early hours of the Asian session on Thursday. The single currency pair might have completed its retracement, which began from 1.0560 earlier. If a higher low is in place around 1.0460, bulls will be poised to hold prices above that and push through 1.0640 and the 1.0920-30 levels respectively.
EURUSD is facing immediate price resistance around 1.0640-50, followed by 1.0920-30, 1.1200 and higher; while support comes in around 1.0300 respectively. A break above 1.0640 is needed to confirm that bulls are back in control and the potential trend has revered against 1.0350. It is not shown here but prices are into the buy zone of a trend line resistance, having tested support at around 1.0460.
EURUSD's bullish divergence seen on the daily RSI has worked well with respect to price action. The near-term target is around 1.0640-50. Potential upside targets remain towards 1.1090 and up to the 1.1500 levels in the next several months. Traders might be preparing to add more long positions around current levels against 1.0300.
Trading plan:
Potential rally through 1.0640, 1.0920 and higher against 1.0300
Good luck!
