? EUR/USD Bullish Momentum Running Out of Steam ?

3 min read

Hi traders,

the EUR/USD uptrend channel is running into a key resistance zone between 1.24 and 1.25. The bullish price action could struggle to continue higher…

EUR/USD

4 hour

A break below the support trend line (blue) could complete this bullish swing, which could be a wave 1 (green) of the uptrend or a bearish correction within a larger ABC (brown).

1 hour

The EUR/USD bullish momentum seems to be running out of momentum, which could indicate either the end of a wave 1 (green) or wave A (red) of a larger wave B (brown). A break below the support (blue) trend line could create a bearish reversal whereas a break above resistance (red) could extend the 5th wave (orange).

USD/JPY

4 hour

The USD/JPY is testing the support trend line (blue), which is a break or bounce spot. A break above the shallow 38.2-50% Fib levels makes such a wave 4 unlikely whereas a bearish break below support (blue) could indicate a continuation of the downtrend.

1 hour

The USD/JPY is building a lengthy sideways correction between support and resistance trend lines. A bearish breakout could start a reversal but a bullish breakout could be limited due to other resistance levels nearby.

Good trading,

Chris Svorcik
Elite CurrenSea

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