EURUSD has terminated potential Wave A of larger degree counter trend rally towards 1.2050, around 1.1900 over the last week. It is most probably correcting lower at the time of writing, to terminate Wave B around 1.1750-1.1820 level before resuming higher again.
EURUSD has dropped between 1.2266 and 1.1660 levels, subdividing into five waves, which has been marked as potential Wave 1 within larger degree Wave (C) on the daily chart presented here. Ideally, the pair is unfolding Wave 2 towards 1.2050-1.2100, before resuming lower towards 1.1300 mark.
Looking at the wave structure since 1.1660 lows, the single currency pair has terminated Wave A of the proposed A-B-C correction towards 1.2050 level. It is producing Wave B lower toward 1.1700-1.1820 now, before resuming higher to terminate Wave C, going forward.
Also note that 1.1820 and 1.1750 are the fibonacci 0.382 and 0.618 retracement levels of the recent rally between 1.1660 and 1.1900 respectively. Wave B could terminate around the above levels before Wave C rally resumes.
Traders might position themselves on the long side accordingly and target towards 1.2050 in the next several weeks.
Prepared by
The Profinacademy.com Team
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