EUR/USD Testing Critical Support on Weekly Chart
Dear traders, the EUR/USD long-term picture remains mixed. The EUR strength followed by a strong USD comeback leaves both doors open. Let’s review both scenarios.
Monthly chart
The EUR/USD is building bullish reversal or bearish continuation. The reversal is part of a wave C (pink) whereas the continuation seems to be part of a wave 5 (red).
Your capital is at risk
Weekly chart
The EUR/USD is either building a bullish reversal (wave 1-2 purple) after completing an ABC (purple) in wave B (pink). Or price action has completed a bullish ABC (orange) within a wave 4 (red). The current volatility leaves both options on the table. Price action will need to either break below the 100% Fib level of wave 2 vs 1 to confirm the downtrend. Or price will need push up and show a new higher low to make the reversal more likely.
Good trading,
Chris Svorcik
The analysis has been done with the help of SWAT method (simple wave analysis and trading)
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