EURUSD resumes rally after printing 1.1186 low

Written by

November 29, 2021

Technical Analysis:

EURUSD has carved a potential bottom at 1.1186 mark over the last week. EURO bulls have managed to stage a 150 pip rally thereafter, before pulling back. The hourly chart suggests yet another near term high around 1.1350-60 zone.

EURUSD had earlier rallied between 1.0636 and 1.2350 levels, carving an impulse Wave (1). The drop through 1.1186 looks like a flat (3-3-5), marked as Wave (2). If the above is correct, bulls might remain inclined to rally above 1.2350 as Wave (3) progresses.

It is worth noticing that EURUSD has found support around the fibonacci 0.618 retracement of Wave (1). Further, the 1.1200-1.1300 is also a point of convergence as fibonacci 1.618 extension of Wave A was complete around 1.1220-30.

EURUSD is facing immediate price resistance at 1.1700-10 mark on the daily chart. A break higher will confirm that bulls are back in control and are here to stay for long. Alternatively, a drop below 1.1186 will open the door to test the 1.1000 handle before finding support.

Traders might be inclined to remain long from here with risk below 1.1186 mark. Immediate price target is 1.1350-60, followed by 1.1375-80 levels respectively.

Prepared by

Finacademy Technical Team

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