Technical outlook:
EURUSD dropped through the 0.9930 intraday lows on Friday before finding interim support. The single currency is seen to be trading close to 0.9965 at this point in writing as the bulls prepare to push above 1.0093 in the near term. Prices must ideally stay above 0.9700 to keep the bullish structure intact. An immediate price target is seen towards the 1.0170-200 area.
EURUSD is still progressing within the last leg higher towards 1.0200 to complete its larger-degree counter-trend rally which had begun from the 0.9535 lows earlier. The counter-trend has got potential to rally through 1.0350 and up to 1.0600 as well before hitting resistance again. If the larger-degree trend has potentially reversed, prices could push through much higher levels.
EURUSD is also testing the backside of the immediate resistance trend line, which is acting as support now as seen on the daily chart here. A bullish turnaround from the current levels would push prices through 1.0200 and higher, before finding resistance again. The overall structure would remain constructive for the bulls until prices stay above the 0.9535 mark.
Trading idea:
Prepare to book profits on long positions around 1.0170-200
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
