Today is the last day of April, which encourages us to study the EURUSD pair, using the monthly studies just a few hours ahead of the monthly closing.
The harmonic studies of the EURUSD pair over monthly basis show that, the pair has bounced off of 1.0460 to the current trading levels and this is the largest retrace since starting the free-fall in the second half of 2014.
It is clear that, the EURUSD has formed three waves to the downside since topping in 2011.
These three waves offer a bullish harmonic AB=CD with PRZ at 1.0835 where 161.8% Fibonacci projection of BC leg exists.
As we use the monthly studies, we will ignore the fall below 1.0835 to 1.0460 and will focus of current stability above the PRZ along with entering inside Bollinger bands once again.
Today, the pair moved towards 23.6% Fibonacci retracement of the CD leg, which is the key level for our bullish harmonic scenario and a break of which will expose the scientific target of the bounce in the 1.18 regions.
With RSI14 attempting to hit the 30.00 levels, we believe that long positions could be a good decision and traders can increase the size of this setup above 1.1295 levels.
Conversely, areas of 1.0650 should protect medium-term traders.