the EUR/USD was unable to break above the resistance trend line (red), which indicates a larger and deeper wave 2 (purple) pattern. Will price be able to confirm the uptrend or will it invalidate the wave pattern and break below 1.1192?
The EUR/USD break above the resistance trend line (red) would confirm the potential uptrend continuation towards the Fibonacci targets around 1.1450-1.15. A break below the local support trend line (blue), however, could indicate a deeper retracement within wave 2 (purple). The Fibonacci levels of wave 2 could therefore act as a potential support and bouncing spot for more upside.
The EUR/USD is now testing the support trend line (blue). Price is expected to move up higher either after a breakout above resistance (red) or bounce at the Fibonacci levels. If price does move up, then impulsive price action would confirm a potential quick wave 3 pattern.
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.
Good trading, Chris Svorcik