EURUSD had dropped through 1.1702 lows overnight before pulling back higher again. It is still not clear about a bottom in place but probabilities remain high. We have adjusted the wave counts here with potential Wave 1 of C in place around 1.1702 lows.
EURUSD has dropped between 1.2266 and 1.1702 levels, sub dividing into 5 waves and print a shallow low below 1.1705 (March 2021 low). It is also possible that the corrective drop from 1.2350 highs is complete with a 3-3-5 flat corrective structure.
If the latter holds true, EURUSD would be back in control of bulls and resume higher from here above 1.2350 levels in the next few weeks. A break above 1.1800 handle from here would confirm that a meaningful low is in place now.
Looking into the subset of both scenarios present here, EURUSD might be poised to rally at least towards 1.2050 mark going forward. We shall review the situation again and decide further direction thereafter.
Traders might prepare to initiate fresh long positions around 1.1710 levels with potential risk below 1.1650 mark and target at least 1.2050 levels in the next few trading sessions.
Prepared by
The Profinacademy.com Team
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