Technical outlook:
EUR/USD dropped to 1.0475 in the early Asian session on Monday. The pair moved in line with our projections made last week. The bulls will be poised to come back in control from here and push through the 1.1100 level. Bottom line is that prices hold above the 1.0350 mark.
EUR/USD has dropped just below the Fibonacci 0.618 retracement of the recent upswing between 1.0350 and 1.0786 levels as seen on the daily chart. Prices have dropped just below the 1.0500-20 mark as projected but still remain in the vicinity. Ideally, we should see a bullish bounce soon from the current levels.
EUR/USD has been working on a larger degree downswing between 1.2266 and 1.0350 levels. The minimum projected target is 1.1100, which is also the Fibonacci 0.382 retracement of the above drop. Traders might prepare to initiate fresh long positions around current levels, keeping in mind the possibility of a decline below 1.0350.
Trading plan:
Potential rally through 1.1100 against 1.0300
Good luck!
