EURUSD might print yet another low around 1.1720/30 levels

Technical Analysis:

EURUSD had dropped through 1.1800 levels on Friday and the currency still remains vulnerable for yet another low towards 1.1720/30 in the near term. Short term support is seen around 1.1700/20 zone and bulls might produce a pullback rally before turning lower again.

EURUSD seems to be progressing into larger degree Wave (3) lower towards 1.1300 at least. The drop since 1.2266 levels might be considered to be a lower degree Wave 1 within Wave (3). If the above is correct, Wave 1 is expected to terminate around 1.1700/20 levels.

The currency might be unfolding into a potential diagonal structure as it prepares to terminate its final wave lower. High probability remains for dropping until 1.1720 levels before it produces a meaningful counter trend rally.

The larger degree wave structure continues to remain bearish until prices stay below 1.2266 levels going forward. The next potential lower high might be carved around 1.2050 levels and bears could be back in control thereafter.

EURUSD remains a good case to be sold on rallies towards 1.2050/1.2100 levels in the next few weeks. Traders could take some profits on short positions around 1.1720 zone and then sell again after the counter trend rally is complete.

Prepared by

Finacademy Technical Team