EURUSD might be preparing to extend its counter trend rally against 1.1750 either from current levels (1.1870) or after correcting towards 1.1810/20 mark, going forward. EURO bulls are looking poised to push through 1.2050/70 zone, before giving up.
EURUSD had earlier dropped between 1.2266 and 1.1750 levels clearly sub dividing into 5 waves as labelled on the chart here. A larger degree Wave 1 might be complete around 1.1750 and the currency could be working on corrective Wave 2 towards 1.2050/70.
Furthermore, bulls might seems to have terminated lower degree wave a towards 1.1908 highs. If correct, wave b is being carved, which could terminate around 1.1810/20 soon. EURUSD might extend wave c rally towards 1.2050/70 levels thereafter.
If the above proposed wave counts unfold accordingly, EURUSD would complete larger degree Waves 1 and 2 at 1.1750 and 1.2050/70 mark respectively, in the coming weeks. High probability remains for bears to be back in control thereafter.
Also note that probability remains for bearish bounce around 1.2070 levels since it is the fibonacci 0.618 retracement of the earlier drop between 1.2266 and 1.1750 levels respectively. Traders might want to position themselves accordingly.
Prepared by
The Profinacademy.com Team
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