EURUSD declined sharply to 1.1235 on Tuesday before finding bids again. Bulls managed to close the day higher around 1.1338 mark. Looking at the short term counts, prices might re-test 1.1235 lows before resuming its rally. Bottom line for bulls to remain in control is the support at 1.1186.
EURUSD has taken out interim resistance at 1.1375 as bulls remain determined to stay in control. The next in-line resistance on the daily chart is the 1.1700-10 zone. A break above that would add further confidence to the bullish scenario.
EURUSD has unfolded as fives wave rally between 1.0636 and 1.2350, followed by three wave drop toward 1.1186. The terminations are marked as potential Wave (1) and (2) on the daily chart. If correct, the single currency pair will rally above 1.2350 subdividing into five waves at least.
Also note that Wave (2) terminated just below the fibonacci 0.618 retracement of Wave (1), which is seen around 1.1290 mark. If the proposed structure holds well, bulls might remain inclined to push through 1.2350 in the next several weeks.
Traders might be inclined to initiate fresh long positions around 1.1250-60 zone with risk below 1.1186. Potential targets are pointing to 1.1700-10, the next resistance, in the near term.
Prepared by
The Profinacademy.com Team
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EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.
