Technical outlook:
The EUR/USD pair had staged a rally from the last week's lows at the 1.1575 levels, closing the week higher above the 1.1720 levels. Yesterday's high at the 1.1750 levels took out an immediate resistance as shown above, giving an edge to the bulls to be able to continue their rally. At this moment, we can fairly conclude that bulls are taking a break or pulling back lower, before they resume the rally towards 1.1850 and higher levels. The pullback is stalling at the Fibonacci 0.382 level for now, but it could extend lower towards the 0.618 support around the 1.1640/50 levels, before resuming again. Only a break below the 1.1575 levels would nullify the present bullish scenario.
Trading plan:
Initiate fresh longs around the 1.1640/50 levels, stop at 1.1570, target at the 1.1850 levels and higher.
Fundamental outlook:
There are no major events lined up for the day.
Good luck!
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