EUR/USD Builds Wave 4 Pullback Towards 50% Fib at 1.11

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Updated: Feb 18, 2020, 09:11 UTC

EUR/USD made a deep bullish retracement towards the 50% Fibonacci, which could be part of the wave 4 as expected last week. Will the EUR/USD make a bounce?

Dear traders, the EUR/USD made a deep bullish retracement towards the 50% Fibonacci level, which could be part of the wave 4 (green) as expected last week. Will the EUR/USD make a bounce?

4 hour chart

The EUR/USD must bounce at the 50% Fib and 1.11 resistance spot to confirm the wave 4 (green) pattern because a push above 1.1125 invalidates (red x) it. A confirmation (green check) is the bounce and breakout below the support trend line (blue). The main target zone is the 1.0950-75 support levels.

1 hour chart

The EUR/USD seems to have completed a bullish ABC (orange) pattern in wave 4 (green). But price will need to show a lower low and lower high to confirm a bearish reversal. Another high could still be a wave 5 of wave C (orange) as long as price stays below 1.1125. A break below the 21 ema zone could be a first confirmation (green check) of a bearish reversal whereas a break below the support line (blue) could finalize it (green check).

Good trading,
Chris Svorcik

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