EURUSD might have carved a potential bottom around 1.1690-1.1700 over the last week. The currency is trading above 1.1720 at the time of writing as bulls prepare to push higher towards 1.2050-1.2100 in the next few weeks.
EURUSD is structurally in a counter trend rally, potential Wave 2, towards 1.2050-1.2100 zone before turning lower towards larger degree Wave (C). Within the counter trend, it seems to have carved lower degree waves a and b around 1.1900 and 1.1700 mark respectively.
If the above structure holds well, we could see EURUSD rally towards fibonacci 0.618 retracement of Wave 1, around 1.2050-1.2100 zone as highlighted on the chart here. It needs to stay above 1.1660 mark to keep the bullish structure intact.
The pair is facing immediate resistance around 1.1785 and 1.1850, while interim support stays at 1.1660 mark respectively. A break above 1.1785 would be constructive for bulls and open door towards 1.1900 and higher, going forward.
The larger degree wave structure continues to remain bearish against 1.2350 as EURUSD unfolds a corrective (A)-(B)-(C) lower towards 1.1300. Within Wave (C) lower, bulls are carving an intermediate Wave 2 towards 1.2050 mark for now. Traders can position themselves accordingly on the long side.
Finacademy Technical Team
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