Technical outlook:
EURUSD climbed to the 1.0750-60 zone after bouncing off the 1.0620-30 lows on Wednesday. The single currency pair is easing off a bit and is trading close to 1.0745 at this point in writing. Bears would remain poised to hold prices below the 1.0786 interim resistance to keep the near-term structure intact.
EURUSD is following a bullish scenario for the medium term with prices targeting above 1.0920-30 and up to 1.1500. Earlier, bulls were successful in carving a lower degree upswing between 1.0350 and 1.0786, taking out the 1.0640-50 initial resistance. Since then, bears are looking to carve an Up Gartley, which is probably into its second wave.
EURUSD is expected to drop sharply through 1.0520 in the next few trading sessions to complete the correction. Bulls are expected to stay on the sidelines for now and look to be back from around 1.0520. Also, note that the Fibonacci 0.618 retracement is passing close to 1.0520 to provide the necessary support.
Trading plan:
Potential short-term drop through 1.0500-20, then rally towards 1.0920 against 1.0300
Good luck!
