the EUR/USD is showing bullish price action but price action is facing resistance at the confluence of moving averages and resistance trend line (red).
4 hour chart
The EUR/USD is expected to make a bearish bounce as part of a wave 4 (orange). A downtrend continuation could confirm (green check) the wave pattern and outlook and indicate a decline towards the Fibonacci targets. The bearish swing might complete a wave C (blue) of wave 2 (purple) correction after which a bullish reversal might kick in (green arrows).
1 hour chart
The EUR/USD seems to be bouncing at the 38.2% Fibonacci retracement level of wave 4 vs 3. A bearish breakout could confirm (green check) the wave 4-5 (orange) pattern lower whereas a break above the 61.8% Fibonacci level invalidates (red x) the bearish wave outlook.
The analysis has been done with SWAT method (simple wave analysis and trading)
This article was originally posted on FX Empire
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