Technical outlook:
EURUSD raised past the 1.0000 mark during the early hours of trade on Thursday after finding interim support around the 0.9920-30 mark. The currency pair is trading just above 1.0000 at this point of writing and is expected to push through at least the 1.0250 level. Bulls look poised to hold prices above the 0.9901 interim support.
EURUSD has already carved a meaningful larger degree downswing between the 1.2350 and 0.9901 levels in the past several months as seen on the daily chart here. Ideally, it should produce a counter-trend rally that reaches at least the 1.0800 level before turning lower again. Prices still need to break above 1.0364 to confirm a meaningful bottom in place.
EURUSD has further produced a bullish divergence on the daily chart as presented here. With prices dropping to new lows around 0.9901, the RSI remains higher, which should be a strong indicator of a potential bullish reversal. We shall bring further updates on price action keeping an eye on the 1.0364 initial resistance.
Trading plan:
Potential rally towards 1.0364 against 0.9901
Good luck!
