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
EURUSD has finally reversed lower from 1.2218 highs last week, after having drifted sideways for a while. The drop was much anticipated as bears have managed to take out over 300 pips since last Wednesday. They remain poised to target below 1.1700 in the near term.
US Dollar Index has raised through 92.00 levels as of now and bulls are looking poised to extend further through 95.00, 96.00 levels in the next few weeks. It is quite possible that they continue higher from here itself or after a pullback, but prices stay above 89.60 levels.
USDJPY breaks higher towards 110.80 levels yesterday as the technical direction was clear and discussed here. At times market awaits a trigger to push through its determined trend; it was the Fed interest rate yesterday that provided the same.