Technical Analysis:
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.
Prepared by
Finacademy Technical Team
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