EURUSD is preparing to continue higher towards 1.1750 level in the next few trading sessions. Bulls are looking poised to remain in control until prices stay above 1.1524 mark. The currency has bounced back from its channel support as shown on the daily chart.
EURUSD had peaked at 1.2350 on January 6 and since then it has carved a corrective drop (A)-(B)-(C), terminating around 1.1524. The November 2020 low around 1.1600 has also been taken out, which indicates a potential pullback ahead.
Looking at the lower degree wave counts, EURUSD has carved potential wave I around 1.1670 mark. If correct, prices could drop toward 1.1585 to terminate wave ii before rallying higher again. The lower degree wave iii is expected to terminate above 1.1750 at least.
EURUSD is facing immediate resistance around 1.1750, followed by 1.1850 and higher, while support is seen at 1.1524 levels respectively. Ideally, prices should stay above 1.1524 to keep the bullish structure intact.
EURUSD could push higher through 1.1950-1.2000 zone, which is close to the fibonacci 0.618 retracement of larger degree Wave (C).Alternatively, a drop below 1.1524 might test 1.1450 handle before resuming higher again.
Finacademy Technical Team
USDJPY could be progressing into a counter trend rally toward 114.30-50 zone in the next few trading sessions.
Gold dropped to $1770 mark on Tuesday before finding some support. The yellow metal is still testing its intermediate trend line support connecting $1721 and $1758 levels respectively.
The US dollar index carves a meaningful top around 96.88 mark over the last week. The index reversed sharply on Friday confirming a bearish Evening Star candlestick pattern on the daily chart.