Technical outlook:
EURUSD rose to the 1.0007 high intraday on Monday, over 250 pips above Friday's low registered at around 0.9740. The single currency pair is seen to be trading close to the 0.9990 level at this point in writing as the bears prepare to take control for a while. Also, note that immediate short-term resistance has been taken out at 0.9977, hence a pullback remains possible.
EURUSD has carved an Engulfing Bullish candlestick pattern on the daily chart over the last week. Prices turned higher from above the 0.9700-10 support, keeping the bullish structure intact. If the above holds well, the bulls will be looking to push towards the 1.0200 mark, which is the next-in-line resistance as marked on the daily chart.
EURUSD could begin retracing lower towards the 0.9840-50 area in the next few trading sessions. Besides, note that the Fibonacci 0.618 retracement of the above area is seen at around 0.9840-50. A high probability remains for a bullish turn if prices drop through above the potential support zone. Upside targets remain towards 1.0200 and 1.0350 for now.
Trading idea:
Potential rally towards 1.0200 against 0.9600
Good luck!
