EUR/USD Bears in Control After Decline at 38.2% Fibonacci
|The EUR/USD strong and impulsive bearish reaction at the 38.2% Fibonacci retracement level of wave 4 vs 3 indicates that the downtrend is likely to continue lower.
EUR/USD
4 hour
The EUR/USD seems to have completed its expected bullish ABC (blue) zigzag pattern, now that the price action has turned heavily bearish. This makes sense because the 38.2% Fibonacci level of wave 4 vs 3 is also a very common Fib level for a wave 4. A bearish breakout below the support trend line (blue) and previous bottom (blue box) could confirm the bearish continuation towards the Fibonacci targets of wave 5 vs 1+3.
1 hour
The EUR/USD break below the support trend line (dotted blue) turned out to be a wave 3 (green) rather than a wave C due to the strong impulsive character of the price action. The mild and corrective bullish price action after the decline is also another confirmation clue that the price is in a wave 4 (green) pattern and likely to test the previous bottom. This remains valid if the price stays below the 50% Fibonacci level of wave 4 vs 3.
The analysis has been done with the CAMMACD.MTF template.
For more daily technical and wave analysis and updates, sign-up up to our ecs.LIVE channel.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.