Technical outlook:
EURUSD climbed above 1.0240 after testing potential support below 1.0200 on Tuesday. The single currency pair is set to push through the 1.0800-1.0900 zone in the next few weeks. Please also note that the potential still remains for a drop towards the 1.0075-1.0100 zone, which is strong support, before the bulls are back in control. The bottom line is the 0.9952 interim support for the bullish structure to stay intact.
EURUSD has been in a downtrend since January 2021 after hitting the 1.2350 highs. The currency pair dropped through 0.9952 before finding support and bouncing back. The bulls are looking poised to produce a meaningful counter-trend rally towards the 1.0800-1.0900 zone at least. Also, note that the Fibonacci 0.382 retracement of the above drop is also passing through 1.0900 to provide enough resistance.
EURUSD seems to be working on its initial lower-degree upswing between 0.9952 and 1.0294 as seen on the daily chart. The trading instrument might have found support at around 1.0110 or it is expected to find one at around 1.0075. Also, note that 1.0075 is the Fibonacci 0.618 retracement of the above upswing and hence, has strong bullish potential.
Trading plan:
Potential rally through 1.0800-1.0900 against 0.9952
Good luck!
