EURUSD dropped through fresh swing lows at around 1.0139 during the Asian session on Friday. The single currency pair has quickly pulled back towards 1.0150 and is expected to resume higher from here. The short-term resistance is now seen at about 1.0192, while interim support seems strong close to 1.0130.
EURUSD seems to have completed its drop from 1.2350 to around 1.0339 or is close to terminating it. Either way, the downside remains limited from here as bulls are looking poised to push higher towards 1.0192 and 1.0614 in the near term. Ideally, the entire drop between 1.2350 and 1.0139 should be retraced in the next several weeks.
EURO bulls are expected to come back in control soon at 1.0152 and push prices towards the 1.0616 initial resistance marked on the daily chart. A break there would confirm that a meaningful bottom is in place at around 1.0139 and the trend has reversed. The bottom line for the above structure to hold is that prices should stay above 1.0130.
Going forward:EURUSD carved a Star Doji candlestick pattern on the daily chart on Thursday. Prices are pulling back after printing lows at around 1.0139 on Friday as a Morning Star bullish candlestick pattern is expected to complete by the end of the day. The cornerstone of the above structure to hold is that prices should stay above the 1.0139 interim support.
Trading plan:Potential rally towards 1.0620 against 1.0000
Good luck!