EURUSD seems to be pulling back towards 1.1570-80 zone, potential support zone, before resuming its rally toward 1.1750 and higher. The single currency pair might have completed its first impulse wave between 1.1524 and 1.1670 levels on Tuesday.
If the above proposed structure is correct, EURUSD could retrace lower through 1.1570-80 mark, which is the fibonacci 0.618 retracement of above rally. High probability remains for a bullish turn if prices are able to drop to 1.1570-80 mark.
EURUSD has been correcting lower since 1.2350 high registered on January 6. The structure looks corrective (A)-(B)-(C), as highlighted on the daily chart here. Also note that prices have tested its Elliott Channel support around 1.1524 mark.
If the corrective wave is complete at 1.1524 mark, EURO bulls would remain inclined to push prices higher towards 1.2350 and higher in the next several weeks. Alternatively, Wave (C) might be still unfolding towards 1.1300 levels.
In case the alternate count holds well, EURUSD could be preparing for a counter trend rally through 1.1900-1.2000 mark in the next few trading sessions. Traders might be willing to hold long positions against 1.1500 handle in the near term.
Prepared by
The Profinacademy.com Team
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