EURUSD seem to have found support around 1.1270 levels on Tuesday. The single currency pair rallied through 1.1320 mark before pulling back lower. Bulls are expected to remain in control until prices stay above 1.1186 level.
EURUSD short term lower degree wave counts are suggesting a series of waves 1 and 2 being carved since 1.1186 lows. Wave 1 might have terminated around 1.1383, while Wave 2 around 1.1235 as the triangle consolidation complete.
Furthermore, the rally between 1.1235 and 1.1386 could be lower degree wave I followed by wave ii at 1.1270 on Tuesday. If the above proposed structure holds well, EURUSD would produce a sharp rally towards 1.1500 as the iii of 3rd wave unfolds.
Also note that Wave 3 might be extending and push prices through 1.1700 level, which is a strong resistance on the daily chart. A break above 1.1170 would confirm that EURUSD has more room to push higher in the medium term.
Traders might be preparing to initiate fresh long positions now around 1.1280-90 levels. The risk remains around 1.1222 and 1.1186 while potential upside is seen through 1.1700 level in the near term.
Prepared by
The Profinacademy.com Team
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EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.
