Technical outlook:
EUR/USD went through 1.0611 on Thursday before pulling back. The pair confirmed a bullish Morning Star candlestick pattern on the daily chart as expected. Bulls will remain inclined to hold prices above the 1.0350 mark to keep the near-term structure intact. Upside potential remains through 1.1100 going forward.
EUR/USD is carving a larger degree corrective rally through the 1.1100 mark, which is close to the Fibonacci 0.382 retracement of the earlier downswing between 1.2266 and 1.0350. Within the corrective wave, the currency has terminated the first and second waves around 1.0786 and 1.0359 levels.
If the above structure holds well, EUR/USD could well be into its last leg rally towards 1.1100 in the next several weeks. Overall, the wave structure still remains constructive for bulls against 1.0350. Most traders might be inclined to initiate fresh long positions around current levels (1.0520).
Trading plan:
Potential rally through 1.1100 against 1.0300
Good luck!
