EURUSD seems to be on the verge of breaking out of the triangle consolidation above 1.1383 mark. The single currency pair reached 1.1386 early on Monday before pulling back. It is expected to find intraday support around 1.1330-40 zone.
Looking at the wave structure since 1.1186 lows, EURUSD might have carved Waves 1 and 2 around 1.1383 and 1.1222 levels respectively. If the preferred count holds well, bulls might remain in control and push through 1.1500 and 1.1700 levels going forward.
The above would also confirm that EURUSD has carved a meaningful bottom around 1.1186 mark and that bulls are poised to push through 1.2350 high. It would take several weeks for the above count to unfold and a break above 1.1700 will confirm.
The larger degree wave structure also remains bullish with Waves (1) and (2) complete around 1.2350 and 1.1186 levels respectively. Also note that Wave (2) terminated close to the fibonacci 0.618 retracement of Wave (1), a common wave relation with fibonacci ratios.
Traders might be willing to hold long positions against 1.1186 potential support. The near term targets are pointing towards 1.1500 and 1.1700. The daily chart resistance is also seen through 1.1700 level.
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.
