EURUSD tests 1.1700-10 zone, which is fibonacci 0.786 retracement of the recent upswing between 1.1660 and 1.1900 respectively. The preferred count remains Wave c higher toward 1.2050-1.2100 zone against 1.1660, going forward.
EURUSD larger degree wave counts are as follows: The currency had rallied between 1.0636 and 1.2350, subdividing into 5 waves. It could be the beginning of a new rally or larger degree corrective wave, which terminates above 1.2350 mark.
The drop between 1.2350 and 1.1660 looks corrective, marked as (A)-(B) and (C) lower towards 1.1300. If the above is correct, EURUSD might have terminated Wave 1 of (C) around 1.1660 and is now pushing towards 1.2050-1.2100 zone to complete Wave 2 correction.
Alternatively Wave (C) could be complete at 1.1660 and EURO might be hearing above 1.2350 mark. Either way, a rally against 1.1660 looks like the most preferred wave count at the time of writing. If the rally unfolds into three waves, bears might be back in control around 1.2050-1.2100 mark.
If the above holds well, EURUSD should stay above 1.1660 mark and turn bullish from current price (1.1715-20). Traders might want to position themselves on the long side accordingly.
Finacademy Technical Team
USDJPY could be progressing into a counter trend rally toward 114.30-50 zone in the next few trading sessions.
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.
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.