EURUSD short term support seen towards 1.1720

Written by

July 26, 2021

Technical Analysis:

EURUSD still remains vulnerable for a drop towards 1.1720 mark, before finding short term support. The currency is trading around 1.1780 levels for now as bears remain poised to print one more low below 1.1751 in the near term.

The overall wave structure continues to remain bearish since 1.2350 highs registered on January 06, 2021. As labelled here, larger degree Waves (1) and (2) are in place at 1.1704 and 1.2266 levels respectively. Since then, Wave (3) seems to be in progress towards 1.1300 levels at least.

EURUSD might be very close to complete lower degree Wave 1 around 1.1720 levels; within the expected 5 wave decline as Wave (3) progresses. If the above structure holds well, we might witness a Wave 2 counter trend rally towards 1.2050 levels soon.

Alternately, a consistent break below 1.1700 levels might drag prices lower towards 1.1300 lows directly from here. It would be interesting to see how prices react around 1.1720 levels as bullish divergences begin to appear on short term charts.

Traders might want to hold short positions with medium term targets to 1.1300 levels. Short term traders might be willing to take some profits around 1.1720 and sell higher again.

Prepared by

Finacademy Technical Team

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