EUR/USD Bearish Pullback in Uptrend After Hitting 1.12

Dear traders, the EUR/USD is building a bearish pullback after hitting 1.12. The retracement should remain shallow if price action is indeed building a wave 3-4 (green) pattern.

4 hour chart

The Fibonacci retracement levels of wave 4 vs 3 are expected to act as a support zone. A bullish bounce could confirm (green check) the uptrend continuation. A bearish breakout below the 61.8% Fib and support (blue) invalidates (red x) the bullish outlook. The next target is at 1.1250-75.

1 hour chart

The EUR/USD has completed a wave 4 (green) IF price action is able to break above the resistance trend line (red). A bearish push could indicate a larger ABC correction within wave 4 (green). A key support level are the 38.2% and 50% Fibs at 1.1050 and 1.10.

Good trading,

Chris Svorcik

The analysis has been done with the help of SWAT method (simple wave analysis and trading)

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