Technical outlook:

The EUR/USD pair rallied as expected and discussed yesterday. Believe it or not, the probability for a push towards 1.1850 and higher levels is increasing now. The rally from yesterday's lows needs to complete 5 waves to confirm further upside. We shall bring more updates as it happens. Please note that the Daily chart presented here suggests a deeper correction (rally) into 1.2000/50 resistance zone before the drop begins. Looking into the wave counts as well, the EURUSD pair is probably heading towards a more complex construction of wave (4), towards 1.2050 levels before resuming lower again. Only a drop below yesterdays' low would change the existing bullish scenario.

Trading plan:

Aggressive traders remain long, stop below 1.1500 levels, target 1.1850 and 1.2050.

Fundamental outlook:

Watch out for German Unemployment Change and Claims at 0355 AM EST followed by Euro-Zone Consumer Price Index at 0500 AM EST.

Good luck!