EUR/USD Reaches Bearish Wave 3 Target at 1.1750

EUR/USD

4 hour

The EUR/USD broke below the previous bottom (dotted blue line) and made a new lower low. The bearish breakout managed to reach the quarter level of 1.1750, which could be the main target for the wave 3 (purple). Price can sometimes extend further and hence it is possible that price could reach the next Fibonacci target as well but a break below 1.1750 support is needed. Otherwise it seems more likely that a wave 4 (purple) correction will take place.

1 hour

The EUR/USD seems to have completed a bearish wave 5 (green) and price could be building a bullish correction within wave 4 (purple) of the 4 hour chart. A bullish break above the resistance trend line (red) could indicate that larger retracement whereas a break below 1.1750 could see an extension of the bearish trend, although slower and more corrective.

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.