The EUR/USD bullish momentum is very strong. This impulse behaves as a typical wave 3 (purple). An uptrend continuation is likely BUT a retracement could take place first.
1 hour chart
The EUR/USD pullback could be an ABC (green) within wave 4 (purple). The retracement targets are the 23.6% and 38.2% Fibonacci levels at 1.1250 and 1.1150. The long-term moving averages could also provide extra support. A break below the 50% Fib invalidates (red x) the bullish outlook.
The EUR/USD break above the 1.1360-75 resistance zone could indicate an immediate uptrend (green dotted arrow). In that case, price might not make a pullback yet. The first target is the 261.8% Fib at 1.1425. The Wizz 9 target is at 1.15-1.1550.
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter
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This article was originally posted on FX Empire
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