the EUR/USD made a bullish bounce at the 144 ema close. The uptrend is now aiming at the Fibonacci targets after price action broke above the resistance.
This article reviews the main targets for the bulls. We also analyse the potential bearish reversal zones.
The EUR/USD is making a bullish break as expected. The swing up is probably a wave C (grey) of larger ABC pattern (grey).
The main targets are therefore the -27.2% and-61.8% Fibonacci levels. Also the 78.6% and 88.6% Fibonacci retracement levels are key.
On the 1 hour chart, price action completed a bearish ABC pattern(light blue) in wave 4 (orange).
The bullish swing is showing strong momentum. This is probably a wave 3 (light blue).
A bull flag chart pattern (grey arrows) would confirm the expected wave 4 (light blue) pattern. But price action must not break below the top of wave 1 otherwise the wave analysis becomes invalid (red circle).