EURUSD faces immediate resistance just above 1.1800 handle

Written by Finacademy.io

August 23, 2021

Technical Analysis:

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.

Prepared by

Finacademy Technical Team

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