Technical Analysis:
EURUSD bulls took off resistance at 1.1900 on Friday before pulling back towards 1.1880 mark. The single currency remains poised to produce a corrective pullback towards 1.1800 at least in the next few trading sessions before resuming higher.
Also note that probability remains for prices to drag lower towards 1.1750 level, which is the fibonacci 0.618 retracement of the recent rally between 1.1660 and 1.1900 respectively. Either way, bears remain poised for a counter trend drop from current level.
EURUSD bulls took control from 1.1660 low and carved a series of higher highs and higher lows towards 1.1900. The rally could be an impulse wave, which is now set to be followed by a corrective drop, before the next leg resumes higher.
Also note that EURUSD is set to produce a counter trend drop towards 1.1750-1.1800 zone, with a larger degree corrective rally towards 1.2050-1.2100 zone as seen on the chart here. The short term price action is bearish while medium term outlook remains bullish.
The overall structure is taking shape of a corrective drop from 1.2350 high registered on January 06, 2021. It is either complete at 1.1660 or is expected to drop towards 1.1300 mark going forward.
Prepared by
Finacademy Technical Team
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