EURUSD Chart Technical Outlook dips to be bought with prime support located at 1.0720
DXY (USD Index) – the index has posted a double top (DT) formation on the four-hour chart. The measured move target is 104.00. The last move higher can be analysed as a fourth wave correction in a bearish Elliott Wave counts (5 waves).
EUR/USD – although the major currency pair traded to the highest level in 16 days on Friday, sellers returned close to the projected cypher barrier at 1.0808. The four-hour chart highlights the completion of a bearish Bat formation at 1.0938. We have a supply zone between 1.0920 and 1.0938.
On the downside, bespoke support is located between 1.0720 and 1.0713. We have a supply zone between 1.0712 and 1.0692.
Conclusion: the bias remains bullish. Prime support is located between 1.0720 and 1.0712. I expect further gains to complete the Bat formation at 1.0938.
Resistance: 1.0808 (projection), 1.0930 (supply), 1.0938 (Bat)
Support: 1.0720 (bespoke), 1.0712 (demand), 1.0650 (swing low)
