Technical outlook:
EURUSD dropped to 1.0510 during the Asian session on Wednesday. The single currency pair rallied through 1.0580 on Tuesday before finding resistance and pulling back. Intraday support is seen close to 1.0500 as bulls prepare to extend their rally towards 1.1100 going forward.
EURUSD's wave structure continues to remain bullish until prices stay above the 1.0350 mark. Also, note that the currency pair might be well underway within its last leg rally to terminate the counter-trend rally that had begun since 1.0350 lows earlier. If the suggested structure holds well, prices would push through 1.0920 and up to 1.1100 soon.
EURUSD has been working on its larger degree downswing between 1.2266 and 1.0350. The Fibonacci 0.382 retracement of the above-drop is also seen close to 1.1100, and hence a high probability remains for a bearish reversal if prices manage to reach there. Traders might be preparing to add further long positions around the 1.0500-10 levels.
Trading plan:
Potential rally through 1.1100 against 1.0300
Good luck!
