? EUR/USD Testing Critical Support on Weekly Chart ?

Dear traders,

the EUR/USD long-term picture remains mixed. The EUR strength followed by a strong USD comeback leaves both doors open. Let’s review both scenarios.

EUR/USD

Monthly chart

The EUR/USD is building bullish reversal or bearish continuation. The reversal is part of a wave C (pink) whereas the continuation seems to be part of a wave 5 (red).

Weekly chart

The EUR/USD is either building a bullish reversal (wave 1-2 purple) after completing an ABC (purple) in wave B (pink). Or price action has completed a bullish ABC (orange) within a wave 4 (red). The current volatility leaves both options on the table. Price action will need to either break below the 100% Fib level of wave 2 vs 1 to confirm the downtrend. Or price will need push up and show a new higher low to make the reversal more likely.

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

For more daily technical and wave analysis and updates, sign-up up to our newsletter.

Good trading,
Chris Svorcik
Elite CurrenSea