EURUSD bounced off after testing 1.1770 levels over the last week and managed to rally through 1.1908 before finding resistance. It looks like the counter trend rally has now begun against 1.1751 lows and has potential to reach up to 1.2050/70 zone.
EURUSD had earlier dropped from 1.2266 highs through 1.1751, sub dividing into 5 waves marking an impulse. Ideally, an impulse is followed by a corrective wave in the opposite direction. It is quite possible that first wave of the correction might be complete around 1.1908.
At the moment, EURUSD is correcting its gains (1.1772-1.1908) through the last week. A drop towards 1.1810/20 remains possible in the near term, before resuming higher towards 1.2050/70 levels. For the above structure to hold, 1.1751 should ideally remain intact.
Trading opportunities might be offered in both directions as traders might prepare to build long positions around 1.1810/20 initially. Once the counter trend rally terminates above 1..2050/70 mark, bears might be back in control.
If the above unfolds accordingly, we might witness a rally from current levels through 1.2050/70 mark and reversal thereafter. The bigger picture still reveals possibility for a continued drop towards 1.1300 levels going forward.
Finacademy Technical Team
Gold prices dropped through $1773 lows on Thursday before finding support again. The drop from $1793 was in-line with price action of a gartley.
The US dollar index might have carved a lower high around 96.50 mark on Tuesday. The index dropped through 95.80 levels on Wednesday before finding some support.
USDJPY is soon approaching a formidable resistance zone around the 114.40-50 mark. The currency pair has been carving a corrective rally since 112.50 lows.