EURUSD found some support after dropping through 1.1660/65 lows over the last week. The currency trades comfortable above 1.1700 mark and might be looking to push further towards 1.1800 mark and clear resistance seen there.
EURUSD bulls might be looking to be back in control and a minimum break above 1.1800 handle is required to confirm the same. If the pair slips below 1.1660 levels from here, it could further test 1.1600 handle before pulling back.
Looking at the wave structure, EURUSD seems to have carved 5 waves between 1.2266 and 1.1660 levels respectively. It could be marked as Wave 1 of (C), looking to push through 1.1300 levels, going further.
If the above structure holds well, EURUSD might be producing a counter trend rally towards 1.2040/50 levels soon. Also note that fibonacci 0.618 retracement of the drop between 1.2266 and 1.1660 is passing through 1.2050 zone.
EURUSD might reverse lower from 1.2050 mark, if price reaches there to complete its counter trend rally and also potential Wave 2 termination. Traders might prepare to enter fresh short positions thereafter turning towards 1.1300 levels.
Finacademy Technical Team
USDJPY could be progressing into a counter trend rally toward 114.30-50 zone in the next few trading sessions.
Gold dropped to $1770 mark on Tuesday before finding some support. The yellow metal is still testing its intermediate trend line support connecting $1721 and $1758 levels respectively.
The US dollar index carves a meaningful top around 96.88 mark over the last week. The index reversed sharply on Friday confirming a bearish Evening Star candlestick pattern on the daily chart.