EURUSD might have finally carved a bottom around 1.1263 on Wednesday. After that, the euro has rallied through 1.1336 before finding some resistance. It has also managed to produce a Pin bar/Hammer candlestick pattern on the daily chart, indicating a potential reversal ahead. Intraday support is seen toward 1.1290-1.1300 zone as bulls are looking poised to be back in control.
EURUSD had earlier rallied between 1.0636 and 1.2350 levels carving an upswing. It has dropped to the Fibonacci 0.618 retracement of the above rally and bounced back. The high probability remains for a trend reversal from the current price (1.1320), provided 1.1263 potential support is intact. Price resistance on the daily chart is at 1.1690 and a break higher will confirm a trend reversal.
The downtrend line connecting 1.2266 and 1.1690 highs. A break above the trend line will confirm that bulls are back in control and prices are into the buy zone again. The next rally from here has got potential to push through 1.2350 levels in several weeks from now. Traders remain inclined to hold long positions against 1.1200.
Potential rally towards 1.2350 against 1.1200.
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