πŸ”΄οΈ EUR/USD Bearish Bounce Indicates Wave 4 Pullback πŸ”΄οΈ

2 min read

Dear traders,

the EUR/USD is showing bullish price action but price action is facing resistance at the confluence of moving averages and resistance trend line (red).

EUR/USD

4 hour

The EUR/USD is expected to make a bearish bounce as part of a wave 4 (orange). A downtrend continuation could confirm (green check) the wave pattern and outlook and indicate a decline towards the Fibonacci targets. The bearish swing might complete a wave C (blue) of wave 2 (purple) correction after which a bullish reversal might kick in (green arrows).

1 hour

The EUR/USD seems to be bouncing at the 38.2% Fibonacci retracement level of wave 4 vs 3. A bearish breakout could confirm (green check) the wave 4-5 (orange) pattern lower whereas a break above the 61.8% Fibonacci level invalidates (red x) the bearish wave outlook.

The analysis has been done with SWAT method (simple wave analysis and trading).

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Good trading,
Chris Svorcik
Elite CurrenSea

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