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.
The Profinacademy.com Team
Bitcoin dropped close to $46000 mark on Monday before finding support again. The crypto is seen to be trading around $46500 mark at the time of writing as bulls remain inclined to be back in control.
The US dollar index spiked through 96.85 mark on Wednesday on the back of the Federal Reserve interest rate decision.
EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.