EUR/USD Bounces at 50% Fibonacci Support of Wave B

EUR/USD

4 hour

The EUR/USD is testing a resistance trend line (red) which is key for a bullish breakout and continuation higher within wave X (purple). A break above the 38.2% Fib makes this wave pattern most likely otherwise price could be building a bearish wave 4 which could lead towards a new lower low. A break below the support trend line (blue) and 1.15 round level could indicate an immediate bearish wave 5.

1 hour

The EUR/USD seems to have completed an ABC (purple) correction and the Fibonacci levels of wave B are acting as a support zone. Price has turned back upwards at the 50% Fib but a break below the previous bottom (blue line) invalidates the current expected zigzag pattern within wave X (purple). A break above the resistance trend line (red) could also indicate a breakout towards the Fib targets of wave X (purple).

Chris Svorcik

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This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.