EUR/USD Triple Bottom Gives Hope to Reversal Bulls

Dear traders, the EUR/USD is in a tight 75 pip range for the first time in 2020. The large volatility of this year has been replaced by a triangle pattern and is now waiting for a breakout.

4 hour chart

The EUR/USD respected the 78.6% Fibonacci support of wave 2 vs 1 for the third time. The triple bottom could increase the odds of a reversal pattern playing out. But a breakout above the resistance trend lines (red) will be needed to confirm (green checks) the reversal.

A break below the bottoms, however, invalidates (red x) the reversal and indicates a downtrend continuation instead. The main target of the upside is the 38.2% Fibonacci level of wave 4 vs 3 whereas the downtrend aims at the round level of 1.05.

Good trading,

Chris Svorcik

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

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