EURUSD had raised through 1.2345 highs over the last week before reversing lower towards 1.2170 mark on Friday. Bears might remain poised to take control back from here and drag prices lower towards 1.1986 levels soon.
EURUSD structure still remains constructive to resume trend lower towards 1.1300 and beyond, since the rally between 1.1704 and now seems corrective a-b-c as shown on the daily chart. Wave a had unfolded as an impulse, b had terminated around 1.1986 while wave c might be unfolding as an ending diagonal.
The proposed ending diagonal either terminated at 1.2245 levels over the last week with the last wave being a truncation; or it could terminate over this week with yet another high above 1.2245 levels respectively.
A break below 1.1986 will confirm that the diagonal structure is complete and that EURUSD is turning lower again. If the above structure is correct, EURUSD might be dropping towards 1.1300 and further, over the next several weeks.
Alternately, if prices break above 1.2350 levels, the above bearish structure would be considered void and bulls could push higher towards 1.2500 levels, going forward. Probabilities remain high for a bearish resumption from here though.
Watch out for a potential test of 1.2245 levels as the week progresses, before EURUSD bears are back with vengeance. Also if 1.1986 breaks from here, it would confirm that a meaningful top is in place already.
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.