close 74% of retail investor accounts lose money when trading CFDs with this provider. Investments involve risks and are not suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
SearchSearch
Change languageEnglish (International)
Dashboard
  1. Home
  2. Analytics
  3. Wave Analysis
  4. EUR/USD Bearish Trend Depends on Reaction at Broken Support

EUR/USD Bearish Trend Depends on Reaction at Broken Support

April 30, 2018 10:32

EUR/USD

4 hour

The EUR/USD bearish momentum broke below a key support zone (dotted green) but did not yet reach the 161.8% Fibonacci target which is the minimum for an impulsive wave 3. Price usually goes further than this Fib target. The reason for this is because price might be building a shallow retracement within the downtrend. However, price should stay below the previous resistance (red) otherwise a bullish wave structure might still be more likely.

1 hour

The EUR/USD could test the broken support zone and continue with the downtrend via the wave 3 (green). Price would need to test and bounce at the Fibonacci retracement levels of a wave 4 (orange). A break above the 61.8% Fib makes a wave 4 scenario unlikely at the bearish trend could be in danger.

Good trading,

Chris Svorcik

P.S. Don't forget to follow Admiral Markets on Facebook – or @AdmiralMarkets on Twitter – for the latest market updates.

help-icon Live chat

Dear Traders,

We would like to inform you that the Facebook page Admirals Global is no longer associated with Admirals.

Please always refer to our official channels for accurate and up-to-date information.

Admirals