EURUSD has pulled off from Tuesday's low around 1.0761 and is now seen to be trading close to 1.1820 mark as Wednesday's Asia Session progresses. The single currency pair is carving a Morning Star candlestick pattern on the daily chart, and if successful, will indicate a potential trend reversal ahead.
EURUSD is targeting 1.1200 level, which is initial resistance on the daily chart, in the near term. A break higher will confirm that trend has potentially reversed and that bulls are back in control. Bulls will remain inclined to hold prices above 1.0759 lows to keep the structure intact. On the flip side, a break lower would challenge 1.0636 support.
EURUSD has carved a meaningful upswing at a larger degree between 1.0636 and 1.2350 levels. Furthermore, the same has been now retraced to its fibonacci 0.786 levels around 1.0759 mark. Probability remains high for a bullish reversal from here and push through 1.1200, 1.1500 and further, in the next several weeks.
Trading plan:Potential rally to 1.1200, 1.1500 against 1.0636.
Good luck!