Technical outlook:
EUR/USD is bouncing right from the convergence levels yesterday, after hitting lows at 1.0997. Please note that the single currency pair has finally produced a bullish Morning Star candlestick pattern, indicating a potential reversal ahead. The euro rallied through 1.1027 yesterday, taking out initial resistance at 1.1025 respectively. Prices have retraced lower today towards 1.1011 before pulling back. It is seen to be trading at 1.1015/17 levels at this point in writing and is expected to push higher to the next resistance at 1.1060 levels respectively. The overall structure remains bullish until prices stay above 1.0879 levels going forward. It is a safe trading strategy to initiate long positions with risk at 1.0879 and targeting 1.1500 in the next few weeks. Since the price has bounced off from a convergence of fibonacci retracement and channel support, the odds remain high for a meaningful bottom having formed.
Trading plan:
Remain long, stop @ 1.0879 target @ 1.1500 and higher
Good luck!