Technical outlook:
EUR/USD dropped through the 0.9730 mark on Thursday before finding bids again. The euro bounced back sharply thereafter and is seen to be trading close to 0.9790 levels at this point in writing. A high probability remains for a bullish turn from current levels and a push through 1.0200 highs in the next few trading sessions.
EUR/USD is still holding above its critical support at 0.9700, followed by 0.9635 and 0.9535 levels respectively. The near-term structure continues to remain bullish till 0.9635 support is intact. Bulls are looking poised to come back in control from current levels as they unfold a potential Engulfing Bullish candlestick pattern on the daily chart.
EUR/USD is also seen to be bouncing off the 0.786 Fibonacci retracement of the recent upswing between 0.9635 and 1.0093 levels respectively. A bullish turn from here has the potential to push the price through 1.0200, which is immediate resistance, at least. Only a sustained break below the 0.9635 mark will nullify the above structure and bring back bears into play.
Trading plan:
Potential rally towards 1.0200 against 0.9600
Good luck!
