EURUSD prepares to resume lower below 1.1700

Written by

July 12, 2021

Technical Analysis:

EURUSD might have carved a lower degree wave iv around 1.1975 earlier and is progressing into its 5th wave, expected to terminate close to 1.1720/30. The currency might produce a meaningful pullback thereafter.

Structurally, EURUSD is progressing lower within a larger degree Wave (3) and might be looking to drop through 1.1300 at least. Ideally, probability is high for dropping towards 1.0636 levels before finding some support again.

EURUSD bears are expected to remain in control until prices stay below 1.2266 levels going forward. Even if a pullback rally is produced from 1.1720/30 levels, it is expected to stall around 1.2050 levels and provide yet another opportunity to initiate fresh short positions.

Short term resistance is now seen around 1.1975 mark and bears might be poised to drag prices lower until the above resistance holds well. Watch out for a turn lower towards 1.1700 at least in the short term before a meaningful rally unfolds.

Traders might want to hold short positions over the long term and also be prepared to add more around 1.1930/50 and 1.2050 levels going forward. EURUSD remain a candidate to be sold on rallies from here on.

Prepared by

Finacademy Technical Team

Related Articles

Gold finds support ahead of $1758 mark

Gold finds support ahead of $1758 mark

Gold dropped to $1770 mark on Tuesday before finding some support. The yellow metal is still testing its intermediate trend line support connecting $1721 and $1758 levels respectively.

US dollar index carves a potential top at 96.88

US dollar index carves a potential top at 96.88

The US dollar index carves a meaningful top around 96.88 mark over the last week. The index reversed sharply on Friday confirming a bearish Evening Star candlestick pattern on the daily chart.