EUR/USD Bear Flag Pattern Retests Critical Fibs at 1.09

Dear traders, the EUR/USD is building a bear flag chart pattern back to the Fibonacci retracement levels of wave 4 vs 3. Will price respect the resistance zone?

4 hour chart

The EUR/USD is testing the Fibonacci resistance of wave 4 vs 3. A bearish bounce and breakout confirms (green checks) the end of the wave 4 (dark red) and the start of the wave 5 (dark red). A bullish break above 1.0950-1.10 invalidates (red x) the downtrend. A bearish continuation aims at the Fibonacci targets.

1 hour chart

The EUR/USD is showing strong bullish momentum at the moment. Price is likely to move up to the 50% Fib at 1.0920, which is the next key decision zone for a bullish breakout or bearish bounce. Strong momentum above the 61.8% Fib at 1.0950 invalidates (red x) the wave pattern. A bearish bounce and breakout confirms the wave 4 (dark red).

Good trading,

Chris Svorcik

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

For more daily technical and wave analysis and updates, sign-up up to our newsletter

 

This article was originally posted on FX Empire

More From FXEMPIRE:

• Gold Price Futures (GC) Technical Analysis – Buyers Looking for Value Between $1628.10 and $1604.80

• Is That The First (And Only?) Coronavirus Stock Bottom?

• Equities Attempt Rebound, Coronavirus Spreading, 2020 Growth In Question

• E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Best Value Zone Target is 8628.50 to 8360.75

• GBP/USD Daily Forecast – Failed Rally Above 1.3000 Triggers Downside Pressure

• Natural Gas Price Fundamental Daily Forecast – Bullish Traders Hoping Cold Extends Beyond March 9