EUR/USD Builds ABC Correction after 5 Bullish Waves?

Červen 01, 2018 12:02

EUR/USD

4 hour

EURUSD - 4 hour - 1 June 2018

The EUR/USD stopped at the previous highs (red) and 23.6% Fibonacci retracement level of wave X (purple). Price could bounce back down at this resistance zone but if it fails to break below the previous bottom, then price could build a larger wave X (purple) correction as indicated in the image. Keep in mind that today there is a news event in the US with new non-farm pay roll (NFP) figures and unemployment rates coming out.

1 hour

EURUSD - 1 hour - 1 June 2018

The EUR/USD bullish price action seems to have completed 5 waves and could now be building an ABC (purple) correction. The Fibonacci levels of wave B could act as support but a break below the 100% Fib invalidates the current expected zigzag pattern within wave X (purple). A break above the resistance trend line (red) could also indicate a breakout towards the Fib targets of wave X (purple).

Chris Svorcik

P.S. Don't forget to follow Admiral Markets on Facebook – or @AdmiralMarkets on Twitter – for the latest market updates.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.