Technical outlook:
EURUSD is approaching the support zone around 1.1050/70 as we have been discussing the same here since the last several trading sessions. Also note that the trend line support for the last 4 months is passing close to the above levels. Furthermore, EURO trades near the Fibonacci 0.618 support of the recent upswing between 1.0980 and 1.1240 respectively. Lastly, the channel support comes in around 1.1038 at this point in writing. All the above convergences are pointing towards a high probable bullish reversal between 1.1010 and 1.1050/70 levels as marked in a rectangle here. With the overall bullish structure intact, EURUSD bulls are poised to find support sooner than expected to resume its rally past 1.1500 level. Immediate support is at 1.0980 followed by a major low/support at 1.0879 respectively. EURUSD remains a buy on dips candidate until it stays above 1.0879 level.
Trading plan:
Remain long, stop at 1.0879, target above 1.1500/1.1800.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com