EUR/USD Remains Bullish Despite H&S Chart Pattern

The EUR/USD is in an uptrend (see blue momentum candles above the moving averages). However, the rising wedge pattern is indicating a potential retracement. What’s next?

4 hour chart

The EUR/USD will probably build a bearish retracement (orange arrow) towards the support zone (double purple line). The previous tops are expected to act as support for a bullish bounce. The correction could be a wave 4 (purple) pattern within a larger wave 3 (pink). The main target is at the round level of 1.15.

The previous top of wave 1 (blue line) is a key zone. A break below it invalidates (red x) the wave 4 (purple) pattern. A break below the previous bottom (green box) invalidates the entire bullish outlook.

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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