Technical outlook:
EURUSD dropped through the 1.0396 mark on Tuesday before pulling back and finding interim support. The single European currency rallied through the 1.0484 high on the intraday chart before closing lower. The daily chart has produced a Doji candlestick, indicating a potential reversal on Wednesday. A confirmed Morning Star would indicate that bulls are back in control to push through the 1.1100 mark going forward.
EURUSD is seen to be trading around the 1.0430 mark at this point of writing and is expected to continue higher from here. Immediate short-term resistance is seen around the 1.0530 mark and a break higher will confirm a reversal. Bulls will be poised to hold prices above the 1.0350 mark to keep the structure intact over the near term.
EURUSD has been unfolding a corrective rally since the 1.0350 level. It seems to be ready to resume the last leg rally towards the 1.1100 mark, which is close to the Fibonacci 0.382 retracement of the larger degree downswing between 1.2266 and 1.0350. Traders might be preparing to initiate fresh long positions around current levels against 1.0350.
Trading plan:
Potential rally through the 1.1100 mark against 1.0300.
Good luck!
