Dear traders,
The EUR/USD made a bullish bounce at the 50-61.8% Fibonacci retracement levels as expected in our EUR/USD and GBP/USD video earlier this week.
However, the impulsive is stronger than expected and the bearish ABC pattern already seems completed at the recent low. This means more upside is likely. Letβs review it.
The EUR/USD seems to have completed the wave B (pink) at the 61.8% Fibonacci support zone.Β
Why? Because the strong bullish bounce is indicating the start of the wave C (pink) zigzag pattern.
The breakout above the resistance trend lines (orange) confirms the continuation of the uptrend (green arrows):
On the 1 hour chart, the current bullish price swing is likely a wave 3 (grey) due to its speed. But price action is now facing a hefty resistance zone from the previous highs (orange box).Β
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter.
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