Technical outlook:
EURUSD has dropped close to 1.1300 in early trading during the Asia Session on Tuesday. The counter trend, which begun on Tuesday, is unfolding in line with expectations towards 1.1250 levels. Once complete, bulls would be back in control and push prices towards 1.1700 at least, and up to 1.2000 going forward.
EURUSD is expected to find support close to 1.1250 mark, which is also fibonacci 0.618 retracement of the recent upswing between 1.1120 and 1.1500 respectively. Potential also remains for a drop through 1.1200 levels before resuming higher again. Ideally, prices would stay above 1.1120 interim support to keep the bullish structure intact.
EURUSD remains bullish with the larger degree wave structure projected on the daily chart here. The initial rally between 1.0636 and 1.2350 has been retraced close to fibonacci 0.618 levels and bounced back. The lower degree wave structure is also retraceing towards 1.1200-50 zone and is expected to resume its rally anytime soon.
Trading plan:
Potential drop to 1.1250 first then rally towards 1.1700 against 1.1100
Good luck!
