the EUR/USD is in an uptrend (see blue momentum candles above the moving averages). However, the rising wedge pattern is indicating a potential retracement. What’s next?
The EUR/USD will probably build a bearish retracement (orange arrow) towards the support zone (double purple line). The previous tops are expected to act as support for a bullish bounce. The correction could be a wave 4 (purple) pattern within a larger wave 3 (pink). The main target is at the round level of 1.15.
The previous top of wave 1 (blue line) is a key zone. A break below it invalidates (red x) the wave 4 (purple) pattern. A break below the previous bottom (green box) invalidates the entire bullish outlook.
The analysis has been done with SWAT method (simple wave analysis and trading).
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