EURUSD wave structure continues to remain bullish as it carves a potential higher low around 1.1167 levels. Bulls would be looking to push towards 1.1500 resistance to confirm a long term trend reversal. EURUSD trades above 1.1200 handle as we prepare the article but we still need to see a break above 1.1250 to confirm a bottom at 1.1167.
Structurally, EURUSD might be unfolding Wave 3 higher since 1.0775 lows. Ideally, prices should stay above 1.1000 to keep the impulse structure intact for Wave 3. Earlier, the currency had rallied from 1.0636 through 1.1150 terminating Wave 1.
The corrective drop Wave 2 had unfolded as a triangle structure a-b-c-d-e, terminating at 1.0775. Since then, Wave 3 has been progressing and is expected to terminate around 1.1500 handle. Please note, a break above 1.1500 would confirm a long term bullish reversal in the EURO.
Looking at the lower degree waves within Wave 3, a potential wave iv has been unfolding since 1.1400 highs. It has dropped close to fibonacci 0.618 retracement of wave iii around 1.1167 today, before reversing higher again. Ideally, EURUSD is expected to stay above 1.1167 lows going forward.
Immediate short term resistance is seen towards 1.1250/60, while interim support is seen at 1.1167 levels respectively. A break above 1.1250 would be encouraging for bulls, and also confirm a meaningful bottom in place at 1.1167 handle.
EURUSD still remains in control of bulls, and a candidate to buy on dips with potential targets above 1.1500 handle.
Long against 1.0630, targeting 1.1500
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.