Technical outlook:
EURUSD dropped to the 1.0072 low on Friday before finding interim support. Prices managed to rise through the 1.0190 highs intraday producing a Hammer/Pinbar candlestick pattern on the daily chart. It indicates a potential trend reversal in the near term at least. The single currency pair is trading close to 1.0150 at this point in writing and is expected to push through 1.0260 in the near term.
EURUSD has remained broadly in control of bears since January 06, 2021. Prices have dropped between 1.2350 and 1.0072 carving a larger-degree downswing. The recent bearish boundary is between 1.2266 and 1.0072, which is expected to be retraced going forward. The potential target for the pullback rally is up to 1.0900 at least, which is the Fibonacci 0.382 retracement of the above drop.
EURUSD has been able to carve a lower degree upswing between 1.0072 and 1.0190 (not seen on the daily chart). Furthermore, prices might have found support at around 1.0130-35 area (seen on the 1-hour chart). If the above structure holds well, bulls will be in control and push prices through 1.0260-70 and up to 1.0400 in the near term.
Going forward:
EURUSD has yet again produced a strong bullish divergence on the daily RSI as seen on the chart here. Prices have carved a lower low at around 1.0072 from the previous low of 1.0349, while the RSI holds above its previous low. It should be considered to be a potential reversal signal. Hence, bulls could be ready to push through the 1.0616 initial resistance going forward.
Trading plan:
Potential rally through 1.0600 and higher against 1.0000
Good luck!
