the Euro currency moved up and down impulsively during and after the interest rate decision, monetary policy, and press conference from the European Central Bank (ECB). Ultimately though the EUR/USD failed to break below the double bottom at 1.11.
The EUR/USD bullish bounce at the 1.11 support and double bottom could indicate a failure of the bears to continue with the downtrend. Of course, if a breakout and close below 1.11 occurs today then a continuation towards the next round level at 1.10 is still likely. But for the moment, the bounce could become a larger bullish reversal, especially if price is able to show a new bullish push within a potential wave A (pink).
The EUR/USD could be building a wave 1-2 (purple) pattern as long as price stays above the 100% Fibonacci retracement level of wave 2 vs 1. The 1.11 support remains a key decision zone for a bounce or break.
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Good trading, Chris Svorcik