Technical outlook:
EURUSD dropped a little more than expected around 1.1320 on Tuesday before finding support again. The single currency pair was expected to drop through 1.1350 mark and bounce back. Please note that the wave structure remains unchanged and stays constructive for bulls until 1.1270 and 1.1235 interim supports are intact.
EURUSD has dropped through the Fibonacci 0.786 retracement of the recent upswing between 1.1270 and 1.1386 levels respectively. High probability remains for a bullish reversal from here and push through 1.1700 mark in the next several weeks. Only a consistent break below 1.1186 will turn the structure to bearish over the near term.
EURUSD remains constructive for bulls over the larger wave structure since the single currency has found support around fibonacci 0.618 retracement of the rally between 1.0636 and 1.2350 respectively. Potential remains for a continuous rally above 1.2350 mark in the next several weeks to come.
Trading plan:
Potential rally through 1.1700 against 1.1150.
Good luck!
