EURUSD has bounced off 1.1530 low and rallied through 1.1586 mark over the last week. The currency might have carved a meaningful bottom around 1.1530 and is now preparing to rally towards 1.1900 mark in the next few weeks.
EURUSD needs to break above 1.1640 mark to confirm a bottom in place and that bulls are back in control. Until that happens, it can print yet another low before turning bullish again. Nevertheless, downside remains limited from here.
EURUSD had earlier carved an impulse wave between 1.0636 and 1.2350 as seen on the daily chart. Since January 6, the single currency pair has been producing a corrective drop (A)-(B)-(C) potentially towards 1.1300 mark.
As highlighted here, EURUSD has either completed the corrective phase around 1.1530 mark, or Wave (C) is still unfolding towards 1.1300 level respectively. Either way, a corrective pullback should resume anytime soon at least towards 1.1900-1.2000 mark.
Also note that EURUSD price has dropped to Elliott Channel support over the last week low at 1.1530. Traders might be preparing to initiate fresh long positions with risk below 1.1450 and potential targets around 1.1900-1.2000 level respectively.
Finacademy Technical Team
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