the EUR/USD made a deep bullish retracement towards the 50% Fibonacci, which could be part of the wave 4 as expected last week. Will the EUR/USD make a bounce?
The EUR/USD must bounce at the 50% Fib and 1.11 resistance spot to confirm the wave 4 (green) pattern because a push above 1.1125 invalidates (red x) it. A confirmation (green check) is the bounce and breakout below the support trend line (blue). The main target zone is the 1.0950-75 support levels.
The EUR/USD seems to have completed a bullish ABC (orange) pattern in wave 4 (green). But price will need to show a lower low and lower high to confirm a bearish reversal. Another high could still be a wave 5 of wave C (orange) as long as price stays below 1.1125. A break below the 21 ema zone could be a first confirmation (green check) of a bearish reversal whereas a break below the support line (blue) could finalize it (green check).
The analysis has been done with SWAT method (simple wave analysis and trading).
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