EURUSD has been trading around 1.1300 mark since last few sessions as bulls prepare for the next leg higher. The single currency is trading around 1.1290 at the time of writing and might re-test 1.1250 zone before resuming higher. Bottom line is 1.1186 level for bullish structure to hold.
EURUSD has bounced off a strong fibonacci convergence around 1.1200-1.1300 zone. As highlighted on the daily chart, the fibonacci 0.618 of larger degree Wave (1) is converging with fibonacci 0.618 extension of the corrective Wave (A).
If the above holds well, the currency should produce a strong bullish reversal soon. The initial target for EURO bulls is 1.1700-10 resistance in the near term. A break would also confirm that bulls are back in control and here to stay for a while.
Also note that potential remains for a push through 1.2266 and above 1.2350 as well, going forward. For now, we remain bullish towards initial resistance around 1.1700 mark. Only a break below 1.1186 will void the above bullish scenario.
Traders might be preparing to hold long positions now (1.1285-90) and also add more on dips toward 1.1230-40. Risk remains just below 1.1186, while short term target points towards 1.1700 mark.
Finacademy Technical Team
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