EURUSD prices dropped marginally below 1.1530 mark before finding support. The currency pair seems to be very close to carve a meaningful bottom soon and proceed higher. The daily chart might be producing an Engulfing Bullish candlestick pattern indicating potential reversal.
EURUSD had rallied between 1.1606 and 1.2350 levels sub-dividing into five waves earlier. The impulse wave has been retraced by a corrective structure labelled as (A)-(B)-(C) on the daily chart here. If the structure is complete, EURO bulls would be back in control anytime soon.
Also note that prices have tested the Elliott Channel support just around 1.1530-50 mark. A break above 1.1640 interim resistance would confirm a bullish reversal ahead. If the above structure holds well, EURUSD will be pushing higher above 1.2350 mark in the next several weeks.
Alternatively, if Wave 1 of (C) is terminating now, the currency would rally to produce Wave 2 of (C) towards 1.1900-1.2000 handle. It is also the fibonacci 0.618 retracement of Wave 1 proposed on the chart as an alternate count.
Traders might be preparing to initiate fresh long positions against 1.1450 mark, with potential target towards 1.1900-50 at least.
The Profinacademy.com Team
Gold prices have reversed sharply toward $1780 levels in the past few trading sessions losing over 100 points. Bulls have managed to hold prices above a critical support around $1758 mark until now.
The US dollar index rallied through 96.88 levels on Wednesday, a bit higher than the expected 96.65 mark. The index has now tested fibonacci 0.50 retracement of the larger degree Wave (1) as labelled on the daily chart here.
EURUSD has carved yet another shallow low on Tuesday around 1.1226 before finding mild bids. The downside remains limited from here and the single currency pair might test 1.1200-10 mark before resuming higher again.