EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon. The single currency pair needs to break above 1.1383 mark to break from its potential contracting triangle consolidation.
EURUSD’s lower degree wave counts are as follows: The rally between 1.1186 and 1.1383 was in five waves, labelled as Wave 1on the daily chart. The subsequent price action has been a potential triangle for Wave 2 termination around 1.1250 mark.
If the above structure holds well, prices would stay above 1.1186 and push through 1.1383 mark in the next few trading sessions. EURUSD bulls would remain poised to target above 1.1700, which is the next resistance on the daily price chart.
EURUSD had earlier rallied between 1.0636 and 1.2350, subdividing into five waves, marked as Wave (1). The subsequent drop to 1.1186 has unfolded into three waves, marked as Wave (2) on the chart here. If the above holds well, Wave (3) should unfold towards 1.2350 and higher from here.
Traders might remain poised to hold long positions from current levels (1.1270), with risk below 1.1150 mark respectively. Potential near term targets are towards 1.1500 and 1.1700 respectively.
The Profinacademy.com Team
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.
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.