EURUSD has retraced back to 1.1715 before finding support and is trading just below 1.1730 at the time of writing. The currency pair seems to have carved a higher low, potential Wave B termination around 1.1700 mark, and is preparing to resume its rally towards 1.2050 as Wave C progresses.
EURUSD is producing a counter trend rally since 1.1660 lows, to terminate Wave 2 around 1.2050 zone. Also note that fibonacci 0.618 retracement of Wave 1 (1.2266-1.1660) is passing through 1.2030-50 zone, the fibonacci convergence zone.
High probability remains for a bearish reversal if prices manage to reach there, and resume towards 1.1300 mark to complete a larger degree corrective phase. Intermediate trend in EURUSD remains bullish, while medium to long term trend is bearish against 1.2350.
EURO bulls are facing immediate resistance at 1.1785, followed by 1.1850, while interim support is seen around 1.1660 levels respectively. A break above 1.1850 will confirm that bulls are back in control and that Wave C is progressing towards 1.2050.
Traders might want to initiate fresh long positions around current price against 1.1660 lows and potential target towards 1.2050 in the next several weeks.
Prepared by
The Profinacademy.com Team
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