EURUSD Technical Analysis, July 20, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts

EURUSD:


Technical Outlook:

EURUSD might have carved a meaningful top around 1.1450 mark last week or could print a high around 1.1500 before reversing lower. The currency is expected to drop lower from here or after taking out resistance at 1.1500.

EURUSD has been carving higher highs and higher lows since 1.0636 levels in March 2020. Looking into the wave counts again, EURO seems to have carved Waves 1, 2, 3 and 4 already. Potential Wave 4 termination was around 1.1167 levels.

The recent high at 1.1450 could be either Wave 5 termination, or Wave 5 under progress towards 1.1500 levels. Either way, a corrective drop should be soon underway and the first leg could be seen towards 1.1167 lows.

As an alternate count, EURUSD might have completed Wave 3 around 1.1450 levels last week. The entire rally from 1.0636 through 1.1450 could be seen as corrective, and EURO might resume lower below 1.0636 in the coming weeks. The alternate count remains less probable though.

Looking at the fibonacci ratios spread here, a drop towards 1.0900 remains high probability to complete the corrective wave. Also note that 1.0900 is close to fibonacci 0.618 retracement of previous rally as well. A bullish bounce remains high possible if prices manage to reach there.

Overall, EURUSD remains a good candidate to be sold on rallies through 1.1500 levels over the next few weeks as bears might want to remain in control.


Trading Strategy:

Short against 1.1550, targeting 1.1167 and 1.0900


Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.

Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.

Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.

Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.

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