EURUSD Resistance Stays Around 1.2010

07 September 2020

EURUSD had hit 1.2010 mark early last week before finding resistance. It reversed sharply towards 1.1780 before pulling back higher again. EURO might have print a meaningful top and should drop lower towards 1.1150 at least in the next few weeks.

EURUSD had dropped to fresh lows in March 2020 (1.0636, not seen here). The currency has rallied through 1.2010 highs clearly sub dividing into 5 waves (impulse). According to the general guideline of the wave principle, a 5 Wave rally is followed by a 3 Wave drop.

Ideally, EURUSD might be preparing for a similar degree corrective drop towards 1.1150 levels at least. Also note that previous Wave 4 of one lesser degree also terminated around 1.1167, making it a high probability bounce, going further.

Further, the fibonacci 0.618 retracement of entire rally between 1.0636 and 1.2010 is also seen around 1.1160 mark. If the corrective wave unfolds towards 1.1150/60 mark, EURUSD bulls might be poised to be back in control.

An alternate scenario could be as follows: The recent rally between 1.0636 and 1.2010 might be the last wave of a potential expanded flat correction. The bearish boundary in question could be between 1.2555 and 1.0830 respectively.

If the alternate count holds true, EURUSD might turn bearish from here and resume a new trend that could extend below 1.0636 mark. Traders might be prepared either ways and remain short against 1.2010 resistance , going further.

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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