πŸš₯ EUR/USD Tests Deep 78.6% Fibonacci after Bearish Zigzag πŸš₯

3 min read

Hi traders,

the EUR/USD made a deeper retracement back to test the support levels of the consolidation zone (blue lines). The 78.6% Fibonacci retracement level is expected to provide support and a potential bullish reversal as part of a wave 1-2 pattern (green).

EUR/USD

4 hour

A break above the resistance trend line (red) would indicate a bullish breakout towards the Fibonacci targets of wave C vs A. A break below the 100% Fibonacci level of wave 2 vs 1 however would invalidate the wave 2 pattern. Bearishness is only expected if price is able to break below the bottom of the consolidation zone (orange arrows).

1 hourΒ 

The EUR/USD seems to be completing a bearish ABC (orange) zigzag pattern within waveΒ 2 (green). But the confirmation only occurs if price is able to break above the resistance trend lines (red lines) with strong bullish momentum.

For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.

Good trading, Chris Svorcik

Leave a Reply

avatar

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of