EURUSD Technical Analysis, November 16, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts


Technical Outlook:

EURUSD might be facing resistance around the 1.1840/50 zone and bears would remain poised to take control back from here. The currency is testing fibonacci 0.618 retracement of the recent drop between 1.1920 and 1.1745 respectively around 1.1850 mark and is expected to resume lower.

EURUSD faces immediate resistance around 1.1920, followed by 1.2010, while interim support is seen around 1.1745 respectively. A push through 1.1745 will confirm that bears are back in control and that a meaningful lower top is in place around 1.1850 levels.

EURUSD might be carving a potential Wave 4 lower towards 1.1500 levels, which is fibonacci 0.382 retracement of the previous Wave 3 as labelled on chart here. A complex A-B-C corrective wave structure seems to be underway towards 1.1500 at least.

If the above structure holds well, EURUSD should resume Wave C lower anytime soon after having terminated Wave B around 1.1920 over the last week. It remains to be seen if Wave C unfolds into 5 waves lower towards 1.1500.

Only a break above 1.1920 and subsequently 1.2010 would delay matters further for the above bearish outlook. Once EURUSD terminates potential Wave 4 towards 1.1500, it could push higher towards 1.2010 to terminate Wave 5, before reversing lower again.

EURUSD remains bearish for short term and could push prices through 1.1500 mark before turning bullish towards the major trend. Bears would be poised to push lower from current levels (1.1850), with risk around 1.2010 respectively.

Trading Strategy:

Remain short against 1.2010, targeting below 1.1500.

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