EURUSD short term chart (1 hour) is suggesting that interim resistance stays at 1.1348 levels. The currency pair needs to push above that handle to get back bulls under control. A slip below 1.1167 would indicate a meaningful top in place and that EURO is heading towards the 1.1000 mark.
EURUSD had dropped from 1.1422 highs on June 10, 2020 towards 1.1167 in a corrective way, labelled as a-b-c on the chart. Prices then managed to rally through 1.1348 levels breaking above the intermediary resistance trend line.
At the moment, EURUSD is testing the back side of the resistance turned support trend line around 1.1210 mark. A short term bullish bounce remains high probability here, and could push prices back towards 1.1280/1.1300 region.
Also note that the fibonacci 0.786 support of the rally between 1.1167 and 1.1348 is passing close through 1.1210 mark. This is the last available potential support and a bullish bounce here could bring back bulls under control for the short term.
Alternately, a break below 1.1167 would accelerate lower towards 1.1000 handle. The entire wave structure from 1.1422 towards 1.1348 could be then constructed as a part of larger corrective drop A-B-C. EURUSD is expected to drop beyond 1.0636 lows in that case.
We still favour a short term bullish reversal from around current price action, 1.1210 mark. That would relieve immediate selling pressure and possibly retrace EURO towards 1.1280 mark. We need to have a bullish candlestick pattern formation to confirm the above.
Most short term traders could be preparing to sell on rallies toward 1.1280/1.1300 mark. A protective stop might be placed above 1.1350 and projected target below 1.1000 level respectively. Only a break above 1.1348 could change the short term wave structure and bulls might be back in control.
Technical Analysis Team
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