EUR/USD Bulls Regain Control but Needs Push above 1.1350

The EUR/USD made a bullish bounce at the 23.6% Fibonacci support level. Now price is trying to break above the 21 ema zone, which is a full uptrend alignment. But the price will need to make a break or flag to confirm it.

4 hour chart

The EUR/USD is approaching a key resistance level (orange line). This is a head and shoulders zone that could create a reversal (orange dotted arrows) if the bearish price action is strong. But if price action goes sideways, then it’s a bull flag pattern. This indicates a bullish breakout. The same is valid if price action breaks the resistance zone and then builds a flag. Both patterns confirm a wave 3-4-5 (purple) pattern.

The main target is aiming for the next zone at 1.1475-1.15, which is the confluence of both the 100% Fib and Wizz 9 target. If price action does build a deeper retracement, then the next 38.2% Fibonacci level is expected to be a support together with the 144 ema. Only a break below the 50% Fib invalidates (red x) the bullish outlook and wave 4.

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

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