EURUSD is pulling back towards 1.1750 after hitting 1.1850/55 high over the last week. The currency is on its way to complete the corrective drop towards 1.1750, before resuming higher. Bulls might be inclined to be back in control soon.
EURUSD is carving its intermediate Wave 2 within primary Wave (C) lower towards 1.1300 mark. The counter trend Wave 2 is expected to terminate around 1.2050-1.2100 zone in the next few trading sessions.
Also note that 1.2030-50 is the fibonacci 0.618 retracement of the drop between 1.2266 and 1.1660 levels respectively. High probability remains for a bearish bounce if prices manage to reach there, before bears are back in control.
Alternatively it could be possible that EURUSD has completed its corrective decline (A)-(B)-(C) between 1.2350 and 1.1660 mark. If correct, the currency might be setting up for a rally above 1.2350 against 1.1660 lows.
We shall be prepared to review wave structure around 1.2050 mark to decide on further direction. Looking at the medium term outlook, EURUSD is expected to remain in control of bulls until 1.2050 at least. Traders might be prepared to initiate fresh long positions around 1.1750, against 1.1660 mark.
Finacademy Technical Team
Gold prices dropped through $1773 lows on Thursday before finding support again. The drop from $1793 was in-line with price action of a gartley.
The US dollar index might have carved a lower high around 96.50 mark on Tuesday. The index dropped through 95.80 levels on Wednesday before finding some support.
USDJPY is soon approaching a formidable resistance zone around the 114.40-50 mark. The currency pair has been carving a corrective rally since 112.50 lows.