EUR/USD finally dropped to 1.1260 in the early hours of the trade today, before pulling back. The currency pair is trading above the 1.1300 mark at this point of writing and is looking poised to resume higher from here. Immediate price resistance on the daily chart is seen towards the 1.1690 mark and bulls will be poised to break higher to confirm a reversal in trend.
EUR/USD is bouncing off from the Fibonacci 0.618 retracement level after its previous rally between 1.0636 and 1.2350 respectively. If the price action produces a bullish candlestick pattern, the currency would be set to resume its rally. The corrective drop from the 1.2350 high is looking complete now as bulls remain poised to be back in control.
Looking at the overall wave structure, EUR/USD remains bullish against the 1.0636 mark. It has carved a meaningful upswing between 1.0636 and 1.2350, which is followed by a Gartley towards 1.1260 respectively. If the structure holds well, the next rally could reach the 1.3300 mark. Only a consistent drop below 1.1200 would nullify the bullish scenario.
Potential rally towards 1.2350 against 1.1200
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