EURUSD is trading into the buy zone of resistance trend line since breaking higher over the last week. The currency trades near 1.2120/25 levels for now and is expected to push through 1.2190 before facing resistance again.
Also, note that Fibonacci 0.618 retracement of the entire drop between 1.2350 and 1.1950 is seen passing through 1.2200 marks. If bulls manage to push through 1.2200 regions, a high probability remains for a bearish reaction as bears remain poised to take control back.
The short-term wave structure reveals an impulse drop Wave 1 from 1.2350 through 1.2050 levels respectively. Since then, a complex corrective Wave 2 might be underway towards 1.2200 marks as highlighted on the 4H chart here.
If the above structure unfolds accordingly, EURUSD might carve/terminate potential Wave 2 around 1.2200/50 levels and then resume lower, as Wave 3 begins to unfold. A Fibonacci extension of the entire drop between 1.2350 and 1.1950 is pointing towards 1.1600.
EURUSD bears might remain inclined to push through 1.1600 in the next several weeks. If the above unfolds accordingly, the currency might confirm a much deeper correction going forward. Bottom line remains prices should stay below 1.2350 marks.
We might experience a bit more sideways action for 1-2 days before EURUSD could push through 1.2200 zones. The next wave is expected to be sharp decline towards 1.1600 marks as Wave 3 of a similar degree begins to unfold.
Finacademy Technical Team
Silver has raised through $27.55 levels this morning, alongside most risk assets. The metal has approached a strong resistance zone now and bears might be inclined to take control back soon. Also note that it has almost reached the fibonacci 0.618 retracement of the entire drop between $30.13 and $23.80 levels respectively.
USDJPY bulls are now looking poised to push through 112.00/50 mark, after have carved yet another higher low around 107.50. Please note it bounced off the trend line support since January 2021 lows as well. Looking higher from here for next few weeks.
Gold had raised through $1799 yesterday before reversing sharply towards $1770 before finding support again. The yellow metal is pulling back at the moment and seems to have carved a meaningful top already yesterday. If correct, $1786 might offer strong support.