Technical outlook:
EUR/USD dropped further toward 1.0890 during early trading hours on Wednesday. The pair has crept close to the 1.0900 handle. It could perform a bullish reversal from here. Bulls have to hold prices above 1.0800 lows to keep the structure constructive for further upside.
EUR/USD has retraced the entire rally between 1.0800 and 1.1185 levels, dropping to its Fibonacci 0.786 levels close to the 1.0890 mark. This could be the last level of support offered before prices break below 1.0800 levels. The high probability remains for bulls to be back in control from here and push prices higher through 1.1500.
EURUSD's wave structure still remains constructive for bulls until prices stay above the 1.0800 mark. At a lower degree, the single currency pair has carved an upswing between 1.0800 and 1.1185, which is now followed by a corrective drop to 1.0890. If this scenario comes true, the next leg could be higher from here keeping 1.0800 intact.
Trading plan:
Potential rally to 1.1500 against 1.0800
Good luck!
