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EUR/USD Strong Uptrend but First Discount at Fibonacci

Chris Svorcik

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.

Good trading,

Chris Svorcik

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