EURUSD clears major resistance at 1.1500 levels over the past week. Bulls have registered themselves and confirmed that they are here to stay for long. The structure remains constructive for a continued rally but an impulse looks to be complete.
EURUSD is expected to produce a corrective drop towards 1.1167 at least, before resuming its rally higher. It is not a certainty but probability remains high for a corrective drop before the rally could resume. We shall wait for a confirmation of a bearish reversal.
The wave structure from 1.0636 lows indicate a 5 wave rally, completing an impulse wave. An impulse rally should be ideally followed by a corrective drop, before resuming. EURUSD bulls might be taking a break for a while as the currency produces a corrective drop.
If bulls manage to continue higher from here, the next potential target is 1.1790 levels. EURUSD should find resistance there, before retracing lower again. Looking at the wave structure, a major boundary seems to be in place between 1.0636 and 1.1710 respectively.
EURUSD has also broken above the resistance trend line connecting 1.2550 highs. It has also taken out resistance at 1.1500 levels. A corrective drop at least towards the back side of past resistance trend line could be expected.
EURUSD rally could resume thereafter and head towards 1.2550 mark going further. Only a break below 1.0636 would change the above bullish structure.
Remain flat for now.