EURUSD Carves Potential Top Around 1.2000

14 September 2020

EURUSD might have already carved a meaningful top around 1.2000 levels on September 01, 2020. The currency has dropped over 250 pips since then, hitting lows around 1.1750 mark over the last week. Further it has also produced a counter trend rally towards 1.1914 mark.

EURUSD might turn lower again, as long as prices remain below 1.2000 mark. Bears might remain inclined to stay in control over the next few weeks and push lower towards 1.1200 levels at least. Possibility also remains for a continued drop though March 2020 lows at 1.0636.

EURUSD probable wave counts are as follows: The currency had rallied from 1.0636 lows in March 2020, through 1.2000 highs in September. The rally can be clearly subdivided into 5 waves, making it an impulse (complete rally not seen here).

Ideally, EURUSD should be followed by a corrective drop unfolding as a zigzag or flat towards 1.1200 handle. Also note that 1.1200 is very close to fibonacci 0.618 retracement of the entire rally between 1.0636 through 1.2000 respectively.

Hence probability remains for a bullish reversal from close to 1.1200 handle. If the above structure unfolds accordingly, EURUSD might rally towards 1.2500 levels thereafter. Alternately, a drop below fibonacci 0.786 retracement seen at 1.0950, would threaten to push further lower.

Traders might be preparing to initiate short positions through 1.1920 mark, with a protective stop above 1.2000 handle and projected targets below 1.1200 respectively.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at: support@abansglobal.co.uk
Contact us on +44(0) 203 936 9000

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Equities

Equities

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In