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.
Finacademy Technical Team
Gold prices dropped through $1773 lows on Thursday before finding support again. The drop from $1793 was in-line with price action of a gartley.
The US dollar index might have carved a lower high around 96.50 mark on Tuesday. The index dropped through 95.80 levels on Wednesday before finding some support.
USDJPY is soon approaching a formidable resistance zone around the 114.40-50 mark. The currency pair has been carving a corrective rally since 112.50 lows.