EURUSD Interim Resistance Seen Around 1.1800

28 September 2020

EURUSD has dropped through 1.1612 levels last week. The currency continues to remain in control of bears after hitting 1.2010 highs on September 01, 2020. Short term resistance is seen towards 1.1780/1.1800 handle and it is expected to resume lower from there.

EURUSD was successful in producing a meticulous rally between 1.0636 and 1.2010 in the past several weeks. The rally was clearly sub divided into 5 waves, making an impulse at a larger degree. Under ideal conditions, we should witness a corrective drop towards 1.1100 levels.

Please note that fibonacci 0.618 retracement of the above rally falls around 1.1150/60 mark, which remains high probable bullish bounce zone. The entire structure is not seen on the above chart but it is expected to unfold accordingly in the next several weeks.

EURUSD short term wave structure is also looking encouraging for bears. The initial drop from 1.2010 through 1.1754 could be lower degree Wave 1 (not labelled here). The subsequent sideways price action might have terminated Wave 2 around 1.1915 levels.

Also note that 1.1915 is the fibonacci 0.618 retracement of Wave 1 and an ideal place for bears to have taken control. Going further, Wave 3 might be unfolding since 1.1915 mark, and could be near to completion.

If the above structure holds true, EURUSD might be underway to produce a meaningful drop towards 1.1500 in the near term to complete an impulse drop from 1.2010 levels.

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) 203 868 5803
+44 (0) 203 868 5825

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.

Equities

Global    Equities

Know More

View more
Forex

Forex

Know More

View more
Cfd’s

Cfd’s

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