Technical outlook:
EURUSD seems to have carved an interim high at 1.0197 on Monday. The single currency pair pulled back and printed the 1.0104 intraday low before recovering. The pair is trading close to the 1.0160-65 levels at this point in writing and is expected to drag towards the 1.0050-70 area in the near term before finding some bids. A potential Gartley pattern is in the making before the next leg higher resumes.
EURUSD is pushing through a larger-degree counter-trend rally since printing the 0.9860 lows last week. The above rally has the potential to push through the 1.0800-1.0900 area before terminating and giving in to the bears. Also, note that 1.0800 is close to the Fibonacci 0.382 retracement of the entire drop between 1.2350 and 0.9860 and hence, potential resistance.
EURUSD has carved a potential lower-degree upswing between 0.9860 and 1.0197 as seen on the daily chart here. Prices might be preparing for a corrective decline towards 1.0050-70 and up to 1.0000 before resuming higher again. Please note that 1.0000 is around the Fibonacci 0.618 retracement of the above rally.
Trading plan:
Potential rally through 1.0800-1.0900 against 0.9800
Good luck!
