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.
Finacademy Technical Team
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.
SPX500 has rallied through 4460-80 zone yesterday, carving potential Wave 2 correction. The counter trend correction has also reached fibonacci 0.618 retracement of Wave 1 as highlighted on the 4H chart here. The indice might resume lower soon from current levels.
USDJPY might be unfolding a combination to terminate Wave (4) towards 10.50 over the next few weeks. A potential ending diagonal could be unfolding from 110.50 mark as bears remain poised to drag below 108.50 in the next sub-wave.