February 15, 2021
EURUSD short term structure seem to look constructive for bulls as they might be preparing to push towards 1.2200 levels going forward. The above 4H chart shows a down trend line break and prices entering the buy zone over the last week.
EURO bulls have managed to push through 1.2150 mark and might be preparing to correct lower around back side of the trend line, which is support now. On the flip side, the currency might choose to rally towards 1.2200 levels before finding resistance again.
The rally from 1.1950 lows through 1.2150 last week still looks to be corrective (3 waves). Hence we keep the overall bearish view as intact towards 1.1600 mark. Alternately is the rally unfolds as an impulse, we might have to change the trade direction.
It is good to remain watchful around 1.2030/40 zone either today or tomorrow for a potential bullish reversal towards 1.2200/20 levels respectively. If a triangle is unfolding as a lower degree Wave iv since 1.2150 highs, prices might not drop below 1.2081.
Triangles normally precede the final thrust 5th waves, and if this is the case then EURUSD might be preparing to push higher toward 1.2200/20 zone without dropping below 1.2055 levels. Either way, we shall be watchful over the next few days and update accordingly.
EURUSD might offer opportunities on both sides over the next 1-2 days. A drop through 1.2040/50 would be providing a long opportunity against 1.1950 mark. On the flip side, 1.2200/20 would offer enough resistance to the currency pair.
Finacademy Technical Team
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