Dear traders, the EUR/USD is in a massive bearish price swing. This is probably a wave 3, which indicates that a longer downtrend is expected. Today’s FOMC, however, could cause a pullback.
4 hour chart
The EUR/USD could be completing a wave 3 (dark red) pattern near the 1.0750 support zone. A bullish pullback is expected to be slow, choppy, and corrective wave 4 (dark red). An unexpected break above the 61.8% Fib of wave 4 vs 3 invalidates (red x) this wave 4. A bearish trend is aiming for the Fibonacci targets of wave 3 vs 1.
1 hour chart
The EUR/USD seems to have completed 5 internal waves within wave 3 (dark red). The extension has lasted long with multiple 5 internal waves. A bearish breakout below the support trend line (blue) could confirm the downtrend continuation. Also a bearish bounce at the 23.6% and 38.2% Fibs is likely.
The analysis has been done with the help of SWAT method (simple wave analysis and trading)
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This article was originally posted on FX Empire
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