EURUSD had dropped below 1.2150 support on Friday confirming a potential trend reversal ahead. It seems more probable for a meaningful top in place around 1.2266 levels as bears managed to take out lower degree wave iv if the ending diagonal at 1.2150 levels.
EURUSD has pulled back since then and is expected to reach up to 1.2230/40 levels before finding resistance again. If prices managed to reach there, bears might turn lower again towards 1.1986 and further as potential lower degree wave iii unfolds.
EURUSD has dropped between 1.2266 and 1.2130 levels sub dividing into 5 waves. The subsequent rally is expected to be corrective, which could reach 1.2240 levels. The structure can be defined as lower degree wave I and ii respectively.
If the above is correct, EURUSD should resume its decline towards 1.1986 and 1.1700 levels as wave iii begins to unfold. The entire structure would complete around 1.1300 levels at least. It remains to be seen if EURO finds support there.
The larger degree wave structure since 1.2350 reveals a potential leading diagonal between 1.2350 and 1.1704 levels respectively. The subsequent rally was corrective s-b-c, terminating around 1.2266 levels respectively.
If the above structure holds well, EURUSD shall remain below 1.2350 and continue lower from here as larger degree Wave (3) infolds.
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.