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EUR/USD Expects Pullback to 1.0850-1.09 & Again Downtrend

By:
Chris Svorcik
Published: Feb 19, 2020, 07:55 UTC

EUR/USD is in a massive bearish price swing. This is probably a wave 3, which indicates that a longer downtrend is expected.

EUR/USD

Dear traders, the EUR/USD is in a massive bearish price swing. This is probably a wave 3, which indicates that a longer downtrend is expected. Today’s FOMC, however, could cause a pullback.

4 hour chart

EUR/USD 4 hour chart

The EUR/USD could be completing a wave 3 (dark red) pattern near the 1.0750 support zone. A bullish pullback is expected to be slow, choppy, and corrective wave 4 (dark red). An unexpected break above the 61.8% Fib of wave 4 vs 3 invalidates (red x) this wave 4. A bearish trend is aiming for the Fibonacci targets of wave 3 vs 1.

1 hour chart

EUR/USD 1 hour chart

The EUR/USD seems to have completed 5 internal waves within wave 3 (dark red). The extension has lasted long with multiple 5 internal waves. A bearish breakout below the support trend line (blue) could confirm the downtrend continuation. Also a bearish bounce at the 23.6% and 38.2% Fibs is likely.

Good trading,

Chris Svorcik

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

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About the Author

Chris Svorcikcontributor

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

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