Advertisement
Advertisement

EUR/USD Bears in Control After Rising Wedge Break

By:
Chris Svorcik
Published: Jan 11, 2021, 12:07 UTC

EUR/USD rising wedge chart pattern is confirming a bearish reversal or retracement. How long can the bears keep control before the bulls step in?

EUR/USD

In this article:

The EUR/USD rising wedge chart pattern is confirming a bearish reversal or retracement. How long can the bears keep control before the bulls step in?

Price Charts and Technical Analysis

EUR/USD 11.01.2021 4 hour chart

The EUR/USD had several warnings signals indicating the end of the uptrend:

  1. The double divergence between the tops (orange lines)
  2. The rising wedge reversal chart pattern
  3. The break below the wedge and the 21 ema zone zone
  4. The strong bearish price action after the break in step 3

Price action has in the meantime reached its first target at the 144 ema zone. This could provide support for a bullish bounce, eventually.

But considering the strength of the bearish decline, a fall towards the wizz 5 target and 233 ema could take place first.

After that, a bullish retracement has the best odds. Either via a bear flag chart pattern or via an ABC retracement back to the resistance zone.

A head and shoulders pattern (purple boxes) could further aid the bears for a move down towards the wizz 7 target around 1.20.

On the 1 hour chart, price action could build a 5 wave pattern (grey). Once the wave 3 is completed, a bullish pullback in wave 4 towards the resistance line (orange) is likely.

After that, we expect a bearish drop for a wave 5 to complete the wave A (purple) on the 4 hour chart.

EUR/USD 11.01.2021 1 hour chart

For a look at all of today’s economic events, check out our economic calendar.

Good trading,

Chris Svorcik

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

 

About the Author

Chris Svorcikcontributor

Chris Svorcik is co-founder, trader, and analyst with Elite CurrenSea (www.EliteCurrenSea.com) since 2014.

Did you find this article useful?

Advertisement