EURUSD Potential Top in Place Around 1.1915

10 August 2020

EURUSD seems to have carved a potential top around 1.1915 mark over the last week. The currency had since dropped through 1.1755 levels and could be on its way to break below 1.1700 going forward. Bears looking poised to take control back from here.

EURUSD probable wave counts are as follows: The rally from 1.0636 through 1.1915 seems to have unfolded into 5 waves. It could be a part of the expanded flat 3-3-5 corrective wave structure that had begun in February 2020.

The structure looks complete around 1.1915 or could print through 1.1970 before reversing lower again. If the above proposed wave counts hold well, EURUSD could be on its way lower towards 1.1167, the previous Wave 4 termination.

Furthermore, the Elliott Wave Channel has also been tested for Wave 5 extension and prices have reversed lower. High probability remains for a bearish continuation from here and a break below 1.1700 levels would be encouraging.

Also note that EURUSD has tested the fibonacci 0.618 retracement of its earlier drop between 1.2555 and 1.0636 respectively. A bearish reversal here could send EURUSD lower below the 1.0636 mark as well, going further.

Traders might remain poised to initiate fresh short positions as close towards 1.1850/60 mark, with potential stop above 1.1950 levels. The projected target remains 1.1167 at least, and a break below 1.1700 would confirm.

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.

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