? EUR/USD Builds Triangle after Bouncing at 50% Fib ?

2 min read

Hi traders,

The EUR/USD made a bullish bounce at the 50% Fibonacci level of wave B (blue), which could indicate the end of wave B and the start of wave C.


4 hour

A break above the resistance trend line would confirm the bullish breakout whereas bearish price action could indicate a deeper wave B which could fall towards the 61.8% or 78.6% Fibonacci levels. The EUR/USD is probably in a bullish ABC zigzag unless price breaks below the 100% Fibonacci level, which invalidates this pattern. Another key pattern is the triangle which is indicate by the trend lines (blue and red). A break above or below the pattern could indicate a down or uptrend. The bulls need to keep an eye on the resistance zone though which is indicated by the red box.

1 hour

The EUR/USD is building a sideways correction which could break to both directions. A bullish breakout above the resistance trend line would indicate that price is most likely building a 123 wave pattern (green) within wave C. A bearish breakout could indicate an extended ABC pattern within a WXY (green) of wave B (blue). In that case price could fall towards the Fibonacci levels of wave B whereas a bullish breakout could move up towards the resistance box on the 4 hour chart. A bullish breakout seems more likely when considering the 50% Fib bounce.

Good trading,
Chris Svorcik
Elite CurrenSea

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