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.
Prepared by
The Profinacademy.com Team
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