EURUSD has been sliding lower since 1.1640 highs early this week. The currency pair had dropped through 1.1580 low on Tuesday before finding some support again. Potential remains for another shallow low below 1.1580 before resuming its rally towards 1.1750 and higher.
EURUSD might have completed an impulse (five wave) drop between 1.2266 and 1.1562 levels. If correct, the pair needs to produce a corrective rally towards at least 1.1900-10. Also note that 1.1900-10 is previous wave iv termination and fibonacci 0.50 retracement of the above drop.
High probability remains for a push toward 1.2000 handle as well, which is the fibonacci 0.618 retracement as seen on the daily chart presented here. Either way, the medium term outlook remains bullish against 1.1560, towards 1.1900-1.2000 mark.
The larger degree count also suggests that EURUSD might have terminated its corrective (A)-(B)-(C) drop that had begun from 1.2350 highs. If correct, bulls would be poised to push towards a fresh high above 1.2350 mark going forward.
Also note that EURUSD has bounced off its Elliott Channel support over the last week and produced an engulfing bullish candlestick pattern, indicating a potential bullish reversal ahead.
Prepared by
The Profinacademy.com Team
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