The EURUSD bounced off of the 61.8% Fibonacci retracement level of wave X (blue) versus wave W (blue), which is most likely part of a bigger wave 4 (orange).
60 min EURUSD: Typically waves 4 stop at the 38.2% Fibonacci retracement level; the 2nd most used tu
Yesterday the EURUSD stopped at the 23.6 Fibonacci retracement level – although often price retraces to the 38.2 Fib which is why for the moment the correction is marked as a WXY (blue).
60 min EURUSD:
If price does bounce up, then the wave Y (blue) Fibonacc
The EURUSD broke above the downtrend channel (blue) which signals a high likelihood that wave 3 (orange) is completed and price is retracing in wave 4 (orange).
60 min EURUSD:
With the break of the trend line (purple), price could be in zigzag formation (ABC