EURUSD hit a new swing low at 1.1514 on Friday before finding support again. Then the currency rallied over 60 pips toward a high of 1.1573 before closing around 1.1560-65. The currency pair is trading around the 1.1565 mark at this point in writing. It may push through 1.1573 high in the near term. The structure still remains constructive for bulls for the next few weeks.
EURUSD has been dropping in a corrective wave since 1.2350 high, which was registered on January 06. Bears have remained in control since then and printed a fresh low at 1.1514 over the last week. Apart from that, 1.1514 is extremely close to the Fibonacci 0.50 retracement of the previous rally between the 1.0636 and 1.2350 levels respectively.
If the above structure holds well, EURUSD might resume its larger uptrend, pushing prices above 1.2350 in the next few weeks. On the flip side, a drop below 1.1514 will open the door to test 1.1450-90 levels, which is the next potential support. Either way, the downward movement remains limited from here as bulls are looking poised to take initial resistance at 1.1620 level.
Potential to rally through 1.1950 against 1.1450
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