EURUSD carves potential Wave ii around 1.1535

Written by

November 1, 2021

Technical Analysis:

EURUSD continued to display volatile action over the last week from 1.1693 highs through 1.1535 low. The single currency is trading around 1.1550 levels at the time of writing and might be looking to resume higher. It need to hold above 1.1524, to keep the bullish scenario intact.

EURUSD might have carved an impulse Wave I between 1.1524 and 1.1667, followed by an expanded flat Wave ii toward 1.1535 last Friday. If the proposed wave count is correct, bulls will be back in control and push higher through 1.1900-1.2000 zone as Wave iii unfolds.

Looking at the larger degree wave structure, EURUSD had rallied between 1.0636 and 1.2350 levels carving an impulse wave. The subsequent drop between 1.2350 and 1.1524 looks corrective, labelled as (A)-(B)-(C) on the daily chart here.

Also note that the corrective drop has tested its Elliott Wave channel support around 1.1524 levels. If the structure holds well, prices will stay above 1.1524 and continue pushing higher through 1.1950 levels in the next few weeks.

Traders might be preparing to initiate fresh long positions around current price (1.1550), with risk below 1.1524 and potential target towards 1.1950.

Prepared by

Finacademy Technical Team

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