EURUSD had dropped through yet another shallow low around 1.1705/09 levels yesterday, before finding interim support. With RSI divergence seen on several timeframes, the currency pair might produce a sharp counter trend rally back towards 1.1900/1.2000 handle anytime soon.
EURUSD faces immediate intraday resistance around 1.1770 mark and a push through that would bring back bulls into play. Ideally, a break above 1.1900 would set the tone for further rally towards 1.2000/50 levels in the coming weeks.
Looking at the wave counts, EURO has dropped between 1.2266 and 1.1750 levels, sub dividing into 5 waves marking an impulse. Ideally, the pair is expected to produce a counter trend rally towards at least 1.1940/50 levels before resuming its drop.
The wave structure since 1.1750 might be unfolding as an expanded flat correction, which could begin its lower degree wave c rally anytime soon. If the above is correct, prices would extend above 1.1900/50 sub dividing into 5 waves, to complete the correction.
Alternately, a drop below 1.1700 would open further doors to drag through 1.1600 levels before finding some support again. Most traders might be watching for a break above 1.1770 mark to initiate fresh long positions again.
Prepared by
The Profinacademy.com Team
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