EURUSD clears past major resistance at 1.1500 and pushes above 1.1700 today. The currency pair might be preparing to produce a meaningful corrective drop before resuming higher again. A major upswing has been carved between 1.0636 and 1.1710 respectively.
EURUSD probable wave counts are as follows: The rally from 1.0636 through 1.1150 could be lower degree impulse Wave 1. Wave 2 folded as a potential triangle and terminated around 1.0775 levels before rallying higher again.
Wave 3 could be labelled around 1.1420, followed by a shallow corrective drop towards 1.1167, as Wave 4 as seen on the 4H chart here. Since then, EURUSD might be unfolding 5th wave, which seems to have completed above 1.1700 respectively.
The above 5 wave rally might have completed a larger degree Wave (1) just above 1.1700 handle today. We can expect a corrective drop Wave (2) of a similar degree, before EURUSD could resume higher as Wave (3) unfolds.
If the above counts hold well, EURUSD should prepare to turn lower and produce a meaningful corrective drop towards 1.1200 levels, going forward. We would wait for a confirmation for the correction to have resumed.
Traders might remain inclined to take profits on the long positions initiated earlier. Aggressive traders might be preparing to initiate fresh short positions on a confirmation of a bearish turn. Overall, EURUSD structure might have turned bullish.
Technical Analysis Team
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