EURUSD finds resistance around 1.1370 mark

Written by

January 10, 2022

Technical Analysis:

EURUSD is pulling back lower from Friday highs around 1.1370 levels post Nonfarm Payrolls. The single currency pair is trading below 1.1330 at the time of writing and could slip below 1.1290 mark. Bulls might be preparing to stage a comeback thereafter.

EURUSD might be unfolding a complex combination to carve potential Wave 2 as marked on the daily chart here. The rally between 1.1186 and 1.1383 has been marked as Wave 1, while Wave 2 might be still unfolding as a potential combination.

If the above proposed lower degree wave counts hold well, EURUSD would find support below 1.1270, terminating Wave 2. Prices would stay above 1.1186 interim support as bulls prepare to resume rally from below 1.1270 levels.

EURUSD could push through 1.1500 and 1.1700 levels thereafter. Alternatively, a break below 1.1186 will open the door to further test support at 1.1160 mark. Bulls might be back in picture thereafter and attempt a bullish reversal.

Traders might be preparing to initiate fresh long positions between 1.1250 and 1.1270 range in the next few trading sessions. Risk would remain just below 1.1150 mark, while potential target points through 1.1500 and 1.1700 respectively.

Prepared by

Finacademy Technical Team

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