EURUSD Technical Analysis, November 9, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts

EURUSD:


Technical Outlook:

EURUSD has raised sharply towards 1.1895 levels today since hitting lows around 101600 handle around November 04, 2020. The currency might face resistance around current levels and reverse lower again. If Wave B of an A-B-C is in place, we should expect bears to take control back.

EURUSD had dropped through 1.0636 lows in March 2020. Bulls remained in control thereafter, producing an impulse wave towards 1.2010 highs in early September 2020. If the above impulse wave is complete, a corrective wave might be underway towards 1.1150 levels.

Also note that Waves A and B, within the A-B-C corrective drop might be in place around 1.1612 and 1.1895 levels respectively. If the above structure is correct, EURUSD should reverse sharply lower from here as Wave C might resume soon.

Alternately, if a bottom is in place around the 1.1600 levels, EURUSD might have resumed another rally towards 1.2100 and 1.2200 levels respectively. In the above case, we could witness a corrective drop towards 1.1750 levels at least, before the rally resumes.

Going with the former wave count, EURUSD might have carved an expanded flat Wave B between 1.0600 and 1.1895 levels respectively. The currency might reverse soon from current levels and head straight towards 1.1400 and lower respectively.

A slip below 1.1600 would accelerate lower and also confirm that bears are back in control. If EURUSD manages to break above 1.2010, it would nullify the above bearish structure in the short term.


Trading Strategy:

Short against 1.2010, targeting 1.1150

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