EUR/USD Completes Wave B at 78.6% Fib Support
The EUR/USD is in a downtrend channel and is now facing a critical 78.6% Fibonacci retracement support level. Who will win: the downtrend or support?
EUR/USD
4 hour
The EUR/USD is expected to make a bullish reversal according to the wave patterns and wave analysis. The current move down could be a retracement within the wave B (blue) of a larger bullish ABC (blue) zigzag. This becomes invalid if price is able to break below the 100% Fib level, which could spark a downtrend continuation.
1 hour
The EUR/USD seems to have completed 5 bearish waves at the recent low. But the reversal only becomes more likely if price is able to break above the resistance trend line (red) of the downtrend channel. If price manages to make a breakout then it will be aiming for the Fibonacci targets of wave C vs A. Any break below the bottom could see price move towards 1.10 and then 1.09.
The analysis has been done with the CAMMACD.MTF template.
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Author
Chris Svorcik
Elite CurrenSea
Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.
