EURUSD lacked the bearish momentum to turn below 1.15 again. Is the Euro looking for bullish triggers?
Once again, EURUSD is finding itself around 1.15 after breaking below it early this week. Price is currently testing the bullish resolve and probably looking for a breakout upside. From 1.18, there was a bearish impulse wave. The bearish run which started late September was resisted at 1.18-1.1815 many times before finally breaking downside. The last FOMC rate cut was also a major trigger. The subsequent updates followed the bearish run and identified the formation of an impulse wave. This wave pattern is probably about completing with price reluctant to stay below 1.15. Could this be a trigger for a bullish correction of continuation?
EURUSD Technical Overview and Important Price Levels
In the last update, the chart below was used.
Yesterday, price dropped to 1.1460 before retracing to 1.15 and now back close to 1.1460. A break below 1.1460 should see price crashing toward 1.13 handle. If price rallies above 1.15 once again, we might see the formation of a double bottom reversal pattern. Price could rally toward 1.155 and above if this happens.
The drop to 1.143 shows a wedge/diagonal pattern. Diagonal patterns are often terminating patterns that signal the end of a trend or correction. price often moves in opposite direction. This diagonal/wedge might have completed the impulse wave drive from 1.18. A break above 1.1515 will see price significantly above 1.15 important support. If price rises as expected, we should see it around 1.16-1.17 where important retracement ratios are found. A bridge above 1.1670 will see price eyeing 1.18. Price could be resisted at the Fib-ratio zone and might drop afterwards below 1.143 en-route to 1,13. Alternatively, if price does not break above 1.1515 but drops below 1.143 instead, a further decline could follow to 1.13.
Do you have other views in contrast to the ones listed or you want to compliment them further? let’s know by your comment below. Don’t forget to share this analysis with people that matter to you.