Technical outlook:

The EUR/USD pair has bounced from the 50% retracement level of the rally between the 1.1574 and 1.1750 levels, respectively. The pair has enough potential to stage an extended rally from these levels or it could first drop through the 1.1640 levels and then continue pushing forward. More or less, the pair has been poised enough to rally past 1.1950 levels at least. Bottom line remains that the prices should stay above the 1.1574 levels, for this to stay true. On the flip side, a drop through the 1.1574 levels would clearly indicate that wave (4) of a higher degree terminated at the 1.1850 levels earlier, and that EUR/USD is poised to drop lower towards the 1.1100/1200 levels, respectively. High probability trade setup for now is expected on the north side.

Trading plan:

Remain long EUR/USD and also look to buy on dips through the 1.1640 levels, stop below 1.1574 and target is the 1.1950 levels, respectively.

Fundamental outlook:

There are no major events lined up for the day.

Good luck!