Technical outlook:
EURUSD drops below 1.1600 on Wednesday, taking out a major support since November 2020. The currency pair has dropped beyond 1.1650 mark, against our preferred scenario of a counter trend rally discussed earlier. High probability remains for at least a pullback towards 1.2000 mark since 1.6000 support has been broken.
On the flip side, EURUSD might have completed its corrective drop since 1.2350 high registered on January 06, 2021. In that case, a major bottom could be in place and bulls might come back in control to push prices above 1.2350 going forward. Immediate price resistance is now seen around 1.1750, followed by 1.1855 and 1.1900 while support is at 1.1560 levels respectively.
According to the daily wave structure, a rally towards 1.1900 would be seen as first step towards a corrective rally or push through fresh highs. Traders might position after watching a bullish reversal pattern on the daily chart.
Trading plan:
Flat for now, potential rally remains possible.
Good luck!
