EURUSD dropped to 1.1225-30 zone on Tuesday before finding support. The drop was in-line with expectations and might have completed a lower degree corrective wave 2. Bulls are now looking poised to push through 1.1500 and 1.1700 mark in the next few weeks.
EURUSD had rallied between 1.1186 and 1.1383 sub-diving into five waves, potential Wave 1 (not marked on the daily chart here). The subsequent drop towards 1.1225-30 was corrective zigzag. Potential Wave 2. If correct, bulls are now poised to produce Wave 3 rally through 1.1500 at least.
Also note that initial resistance on the daily chart is at 1.1700-10 mark. A break above that would be considered further bullish as Wave 3 unfolds. Potential remains for a push through 1.2350 mark to complete the wave structure, which began around 1.0636 in March 2020.
EURUSD earlier rallied between 1.0636 and 1.2350 subdividing into five waves, marked as larger degree Wave (1) on the chart. The subsequent drop between 1.2350 and 1.1186 is corrective flat, marked as Wave (2) on the chart here.
If the above structure holds well, EURUSD will resume higher towards 1.2350 sub dividing into five waves at least. Traders might remain inclined to hold long positions against 1.1186 mark, going forward.
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.