EUR/USD Builds ABC Correction after 5 Bullish Waves?

EUR/USD

4 hour

The EUR/USD stopped at the previous highs (red) and 23.6% Fibonacci retracement level of wave X (purple). Price could bounce back down at this resistance zone but if it fails to break below the previous bottom, then price could build a larger wave X (purple) correction as indicated in the image. Keep in mind that today there is a news event in the US with new non-farm pay roll (NFP) figures and unemployment rates coming out.

1 hour

The EUR/USD bullish price action seems to have completed 5 waves and could now be building an ABC (purple) correction. The Fibonacci levels of wave B could act as support but a break below the 100% Fib 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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