Technical outlook:
The EUR/USD pair dropped to the anticipated convergence level at 1.0991 today. The pair is seen to be trading right at the fibonacci convergence at this point in writing and a bullish reversal signal on the 1-4 hour charts would confirm that a meaningful low is in place. Furthermore, a push above 1.1020/40 resistance will add further confidence to the bullish scenario that we have presented for a few trading sessions. Please note that prices are testing fibonacci 0.618 retracement, alongside the past resistance turned into the support zone. So, probabilities for a bullish bounce is high around these levels. The wave structure has been set nicely with a 5-wave rally between 1.0879 and 1.1180, followed by a corrective drop between 1.1180 and 1.0991 until now. Besides, note that a failure at this price could test 1.0940 before reversing higher, tough such probability is less. Trading point of view, it would be a good idea to remain long against 1.0879 from here.
Trading plan:
Remain long against 1.0879, the target is above 1.1500
Good luck!
