The EUR/USD has managed to reach the next expected target at the 1.1750 round level. This strong resistance zone is likely to create some type of correction. But how far?
Price Charts and Technical Analysis
The EUR/USD pullback could be mild. Especially when we consider the strong bullish momentum. This wave pattern is likely a wave 3 (purple). The correction will therefore probably be a shallow wave 4 (purple). Price could respect either the 23.6% or 38.2% Fibonacci retracement levels. A break below the 61.8% Fib invalidate (red x) the bullish outlook.
The main two main scenarios are either a bullish bounce or breakout. A bounce could occur at the 38.2% Fib and 144 ema close. A breakout above the bull flag chart pattern needs to see price clearly push above 1.1775-1.18. The main targets are 1.1875 and 1.20.
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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