EURUSD is testing the backside of the resistance turned support trend line since last one year from 1.2266 highs. The single currency pair might be well supported here and turn higher but a minimum retracement to 1.1350 would be ideal for the next leg higher. Traders might be preparing to buy again a bit lower toward 1.1350 mark at least.
EURUSD has carved an immediate upswing between 1.1120 and 1.1483 over the last week taking out initial resistance just below 1.1500 as marked on the daily chart hee. Bulls have registered themselves and are back in control after pushing almost 350 pips from the January 28 lows around 1.1120. Prices are expected to pullback to a Fibonacci support before resuming higher again.
EURUSD might drop through 1.1350 and 1.1260 levels in the next few trading sessions as they are the Fibonacci0.382 and 0.618 retracements of the above upswing respectively. Also note that an inverted Head and Shoulder might be in the making with potential Right Shoulder to be carved around 1.1250-60 mark, which we shall discuss in the coming days.
Trading plan:Potential drop through 1.1250-60 near term then rally toward 1.1700 against 1.1100
Good luck!