EURUSD has dropped just below the Fibonacci 0.50 retracement of the entire rally between 1.0636 and 1.2350 levels, at 1.1494. The pair has tested the 1.1464 potential support zone and bounced higher again. A bullish reversal from here would still keep the structure constructive for bulls as they prepare to take on 1.1950 handle.
The medium-term outlook still remains bullish towards the 1.1950-80 zone, which is also Fibonacci 0.618 retracement of the drop between 1.2266 and 1.1464 levels respectively. EURUSD is facing immediate resistance around 1.1600, followed by 1.1700; while support is seen around the 1.1460 mark for now. A break above 1.1600 would be encouraging for a further bullish setup.
EURUSD price has dropped to a fresh swing low at 1.1464 early today alongside a bullish divergence seen on the daily Relative Strength Index (RSI) here. The high probability remains for a bullish reversal from current levels. It may break through 1.1950 in the next several weeks.
Potential rally toward 1.1950 against 1.1450
Good luck!The material has been provided by InstaForex Company - www.instaforex.com