Wave Pattern EUR/USD Depends on Next Impulse or Correction

EUR/USD

4 hour

The EUR/USD is still challenging the support line (blue), which is a key bounce or break spot. The bearish retracement is either completing a wave 2 (purple) or a wave A of larger bearish ABC (brown). If price breaks above the resistance (red), it will be important to see how price breaks above the trend line: correctively or impulsively. An impulse could indicate a bullish continuation.

1 hour

The EUR/USD has clear support (blue) and resistance (red) trend lines at the moment. A bearish break could indicate a continuation of bearish wave 5 (red) whereas a bullish break could indicate the start of wave 3 OR a larger bearish ABC correction (brown).

Good trading,

Chris Svorcik

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