EURUSD prepares to rally through 1.2050 levels

Technical Analysis:

EURUSD bulls are looking poised to push higher towards 1.2050 mark at least, before finding resistance and reversing lower again. After breaking below 1.1900 mark over the last week, the possibility of pushing above 1.2350 remains grim.
The wave structure since 1.2350 high is indicating that potential Waves 1 and 2 might be in place as labeled on 4H chart here. If correct, Wave 3 might be progressing lower since 1.2242 high registered on February 25, 2021.
Ideally, if prices manage to stay below 1.2242 mark, EURUSD is looking poised to remain in control of bears and drag lower towards 1.1600 at least. A potential Wave 3 extension is being worked out at the moment which has the potential to drag lower towards 1.1700 at least.
Immediate resistance is seen at 1.2242, while support comes in around 1.1835 levels respectively. At the moment, EURO bulls are looking to retrace towards 1.2050 mark, which is Fibonacci 0.50 level of the drop between 1.2242 and 1.1835 respectively.
Alternately, Wave 2 might be unfolding as a triangle or an expanded flat. In both cases, EURUSD is expected to remain below 1.2350 highs registered on January 06, 2021. Trend line resistance is seen towards 1.2150/60 levels at this point.
EURUSD remains a good candidate to be sold on rallies until 1.2350 resistance is intact. In the near term, a drop towards 1.1900 remains possible but it should be well supported. Watch out for a bearish reaction around 1.2085/1.2100 handle going forward.

Prepared by

Finacademy Technical Team