EURUSD bulls managed to produce the much needed counter trend rally towards 1.1800 handle over the last week. An interim bottom might be in place around 1.1705 levels now as bulls are looking poised to extend its rally towards 1.1920 levels at least.
Looking at the wave structure sine 1.2266 highs, EURUSD has dropped through 1.1705 levels unfolding into 5 waves. The above impulse wave lower would be followed by a corrective wave higher, as a general guideline of the Elliott Wave Principle.
If the above proposed structure unfolds accordingly, EURUSD might rally towards 1.2050 levels going forward. Also note that 1.2050 is fibonacci 0.618 retracement of the earlier drop between 1.2266 and 1.1705 levels respectively. Bears might be determined to be back in control if prices manage to reach there.
The rally until now seems to be in 3 waves hence corrective. It is quite possible that the corrective wave unfolds as a flat (3-3-5) or zigzag (5-3-5), going forward. Immediate resistance is seen around 1.1900 while intraday support might be seen around 1.1740/50 levels respectively.
Traders might remain poised to initiate fresh long positions again around 1.1740/50 levels going forward. The above is also past resistance turned support, which could bring the necessary bullish reversal.
Finacademy Technical Team
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