Synopsis:

Bank of America (BofA) maintains a bullish technical outlook on EUR/USD, indicating that the current consolidation phase is starting to resolve higher. The analysis suggests potential targets at 1.1276—the July 2023 peak—and possibly into the low 1.13s, as the currency pair progresses into wave (v) of a bullish wave 3.

Key Points:

1. Previous Analysis:

   • In July, August, and September, BofA presented an upside bias for the euro, supported by trend signals and wave patterns ahead of Federal Reserve decisions.
   • The focus was on a consolidating wave (iv) within a bullish wave 3.

2. Wave Count and Technical Patterns:

   • The consolidation is expected to resolve higher into wave (v) of 3.
   • The wave count begins with wave I up into January 2024 and wave II down into April 2024.
   • A potential wave III could be underway, targeting at least 1.1292.

3. Target Levels:

   • Immediate target at 1.1276 (July 2023 peak).
   • Possible extension into the low 1.13s.
   • First extension level up at 1.1556.

4. Support Levels:

   • The bullish outlook remains valid as long as EUR/USD stays above 1.10.
   • Staying above this level is crucial for the anticipated upward movement.

5. Future Considerations:

   • Time will determine if further wave extensions are possible.
   • Adjustments to upside counts and measures may be needed based on market developments.

Conclusion:

BofA's technical analysis points to a bullish trajectory for EUR/USD, with the consolidation phase likely resolving higher toward key targets. As long as the euro remains above the 1.10 support level, the currency pair is expected to advance toward 1.1276 and potentially higher, driven by identified wave patterns and technical indicators.