EUR/USD Rocket Moves 400 Pips and Reaches 1.15

Dear traders, the EUR/USD made a strong impulse up. This seems to be wave 3 (blue). A bearish pullback is now expected within wave 4 (blue).

4 hour chart

The Fibonacci retracement levels of wave 4 (blue) are expected to act as support. A bullish bounce could confirm (green check) the uptrend continuation. The main targets are the Fibonacci levels of wave 5 vs 1+3. First target is at 1.16 followed by 1.17-1.1750. A bearish breakout below 1.11-1.1140 could change the wave outlook (red x).

1 hour chart

The EUR/USD seems to have completed 5 waves (oranges) within wave 5 (green). This rally took price from 1.11 all the way up to 1.15. Now a bearish pullback is taking place via an ABC (green) pattern. A further decline could aim at the support around 1.1225-50. A bounce and breakout confirm (green checks) the uptrend whereas a break below the 50% makes it less likely (red x).

Good trading,

Chris Svorcik

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

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