EURUSD progressing towards 1.1800 and 1.1600 levels

Technical Analysis:

EURUSD had reversed from 1.2113 levels over the last week and continued lower below 1.1900 marks. The currency trades close to 1.1900 for now and might be looking to drop lower towards 1.1800 and 1.1600 respectively, before finding support again.
Looking at the medium-term wave structure since 1.2350 highs print on January 06, 2021; EURUSD seems to have carved Waves 1 and 2 at 1.1950 and 1.2242 respectively. Further, lower degree waves I and ii also terminated around 1.1990 and 1.2113 levels.
If the above structure is correct, EURO bears might be unfolding a third of the third wave lower towards 1.1700 and further. Also, note that prices should stay below 1.2113 intermediary resistance for the above structure to hold true.
EURUSD had dropped through 1.1893 lows over the last week, eliminating the possibility of a Wave 4 termination and resuming towards fresh highs above 1.2350 levels. Immediate targets over the next few weeks could be 1.1700 and 1.1600 levels respectively.
Over the next 1-2 trading sessions, EURUSD might drag lower towards 1.1830/40 levels, which is also Fibonacci 0.618 extension of the drop between 1.2242 and 1.1990 levels respectively. In case of an extension, Wave 3 might print further lows.
EURUSD remains good to be sold on rallies through 1.1975/1.2000 mark as the week progresses. Also, note that 1.2000 handle is the Fibonacci 0.50 retracement level of the drop between 1.2113 and 1.1893 levels respectively.

Prepared by

Finacademy Technical Team