EURUSD remains in control of bears until prices stay below 1.2010 resistance. The currency is producing a counter trend rally after having dropped through 1.1610 levels recently. The counter trend might extend to 1.1780/1.1800 mark before revering lower again.
EURUSD bears might be poised to resume lower from current price action around 1.1730/40 levels. Immediate resistance is seen through 1.1870, while support is seen towards 1.1500 levels respectively. Please also note that 1.1500 is also the fibonacci 0.618 retracement of the entire rally between 1.0636 through 1.2010 respectively.
EURUSD had rallied from 1.0636 lows in March, through 1.2010 highs in September 2020. The entire rally was sub divided into 5 waves, caving an impulse. A meaningful corrective drop could be expected from here, which could terminate through 1.1150/60 levels.
Alternately, if the above rally was a part of an expanded flat, EURUSD might have carved a meaningful top around 1.2010 and that it might be heading lower below 1.0636 levels in the next several weeks to come.
Either way, EURUSD is expected to drop from here as a corrective wave towards 1.1100/50 mark or a bearish reversal below 1.0636 levels. We shall take a review again as prices reach the 1.1100/50 levels going forward.
In the short term though, watch out for a break towards 1.1500 mark to complete a lower degree impulse. EURUSD remains a good candidate to be old on rallies from here.
Short against 1.2010, target is open for now.