✅ EUR/USD, USD/JPY Test Key 50% Fibonacci Levels ?

3 min read

The EUR/USD is challenging the support trend line (blue), which is a key bounce or break spot. This bearish retracement could complete a wave 2 (purple) although the bearish momentum could also create a larger bearish ABC (see 1-hour chart).

EUR/USD

4 hour

1 hour

The EUR/USD needs to break the support (blue) or resistance (red) trend line before a new breakout can be expected. A bearish break could indicate a continuation of bearish wave 5 (red) whereas a bullish break could indicate 2 scenarios:

  1. The completion of wave 2 (purple) and the start of wave 3 OR
  2. A larger bearish ABC correction (brown)

USD/JPY

4 hour

The USD/JPY is testing the support trend line (blue). A bullish bounce could indicate an uptrend continuation whereas a bearish break could indicate that price completed an ABC rather than 123 which could create more downside.

1 hour

The USD/JPY is in a potential wave 4 (green) as long as price stays above the support trend line (blue) and 61.8% Fib.

Good trading,

Chris Svorcik
Elite CurrenSea

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