EURUSD has bounced back sharply to hit intraday high around 1.1830 after dropping to 1.1775 on Monday. The currency pair might have carved a meaningful bottom around 1.1775 or could drop to 1.1760-70 before resuming higher. The counter trend rally is set to target 1.2050-1.2100 zone in the next few weeks.
Also note that fibonacci 0.618 retracement of the drop between 1.2266 and 1.1660 level is passing through 1.2050 mark. Hence probability for a bearish bounce remains highif prices manage to reach there. The pair is seen to be trading around 1.1808-10 levels at this point in writing and is expected to drop toward 1.1750-60 before support finding support again.
The pair is facing immediate resistance around 1.1850, followed by 1.1900-10; while support is sround 1.1735, followed by 1.1660 levels respectively. Bulls are looking poised to be back in control around 1.1750-60 and push higher toward 1.2050 levels respectively.
Potential rally towards 1.2050-1.2100 against 1.1650.