? EUR/USD Bullish Price Action Indicates First Sign of Reversal ?

May 31, 2018

2 min read

Hi traders,

The EUR/USD is showing a first sign of bullish price action after reaching a key round support level at 1.15. Price is now testing a key resistance trend line of the downtrend which is a major bounce or break decision zone.

EUR/USD

4 hour

The downtrend could be over if price manages to break above the resistance trend line (red) and 1.1750 resistance level or if price fails to break the bottom and bounces. In that case, price probably completed a bearish ABC pattern (purple) and price could be ready for a bullish retracement towards the Fibonacci levels of wave X (purple).

1 hour

The EUR/USD bullish price action could indicate that 5 waves are being built, which would imply that more upside could be expected in the near future. The 5 waves could complete a wave A (pink) and price could retrace back for a wave B before moving up again within wave C. For an ABC zigzag to indeed take place, price must not break below the current bottom around 1.15.