EURUSD had pushed through 1.1770 levels yesterday, before pulling back to 1.1735/40. The currency has remained in control of bulls since 1.1660 lows over the last week and could resume higher through 1.1800 resistance in the next leg.
EURUSD had earlier dropped between 1.2266 and 1.1660 lows, sub diving into 5 waves, making an impulse. As we know as a general guideline, an impulse wave is ideally followed by a correction in the opposite direction.
It is still early to declare that EURUSD bulls would remain in control and take out 1.1800 resistance going further, but potential remains high for the counter trend rally to have resumed from 1.1660 mark. We need to see a clear break above 1.1800 and 1.1900 resistance to confirm.
Also note that Wave A of the proposed A-B-C correction could terminate close to 1.1900 handle, before Wave B correction resumes lower again. Finally, a Wave C rally might extend towards 1.2050 levels, which I fibonacci 0.618 retracement of the above drop.
Traders might prepare to initiate fresh long positions against 1.1660 low and potential target towards 1.2050 levels going forward.
Prepared by
The Profinacademy.com Team
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