Yahoo Finance EUR/USD Bears Control Price Action & Aim for 1.10 Support
The EUR/USD is showing strong bearish price action after breaking below the support trend lines (dotted blue). Price action looks ready for a decisive breakout below 1.1090.
4 hour chart
The EUR/USD seems to have completed a wave 4 (orange) after completing a bear flag chart pattern. A break below the support line (green) could confirm (green check) the bearish breakout towards the Fibonacci targets. The main target is the 1.0950-1.10 zone. A breakout above the resistance line (red) could invalidate (red x) the bearish wave outlook.
1 hour chart
The EUR/USD bullish retracement seems to be a wave 4 (dark red) pullback. The Fibonacci levels are expected to act as resistance levels for a bearish continuation (orange arrows) below the support zone (green check). An expected rally above the 61.8% Fib of wave 4 vs 3 would invalidate (red x) the current wave outlook.
Good trading,
Chris Svorcik
The analysis has been done with SWAT method (simple wave analysis and trading)
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This article was originally posted on FX Empire
