EUR/USD Bearish Freefall Drops 200 Pips and Reaches 1.09

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Dear traders, the EUR/USD is showing massive bearish momentum. The expected downtrend is now unfolding in 5 waves (orange). Can price action even break the bottom of wave 3 (blue) at 1.0881?” data-reactid=”11″>Dear traders, the EUR/USD is showing massive bearish momentum. The expected downtrend is now unfolding in 5 waves (orange). Can price action even break the bottom of wave 3 (blue) at 1.0881?

4 hour chart

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Our EUR/USD wave analysis was expecting a bearish wave 4-5 (green) pattern within a wave C (blue). The bearish breakout indeed confirmed our bearish view. However, the momentum is much stronger than expected. Price could be building a larger bearish wave 3 (rather than a wave C) if it’s able to break below the 100% Fib of wave 2 vs 1 at 1.0881.Also, Ultima EA had massive wins with the +/- 7 shorts on the EUR/USD. The winning streak is sending the account sky high.” data-reactid=”20″>Our EUR/USD wave analysis was expecting a bearish wave 4-5 (green) pattern within a wave C (blue). The bearish breakout indeed confirmed our bearish view. However, the momentum is much stronger than expected. Price could be building a larger bearish wave 3 (rather than a wave C) if it’s able to break below the 100% Fib of wave 2 vs 1 at 1.0881.Also, Ultima EA had massive wins with the +/- 7 shorts on the EUR/USD. The winning streak is sending the account sky high.

1 hour chart

The EUR/USD made a pullback pattern after Friday’s NFP event. This has been labelled as wave 1-2 (dark red). Yesterday price was able to break the support line (dotted blue) for a new lower low, again. The bearish impulse remains strong, so the price swing has been labelled as a wave 3 (dark red). The current pullback could be a wave 4 (dark red) as long as price action stays below the 61.8% Fibonacci retracement level of wave 4 vs 3. A bearish breakout could confirm a move lower towards the Fib targets.

Good trading,

Chris Svorcik

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

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For more daily technical and wave analysis and updates, sign-up up to our newsletter.” data-reactid=”33″>For more daily technical and wave analysis and updates, sign-up up to our newsletter.

 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This article was originally posted on FX Empire” data-reactid=”35″>This article was originally posted on FX Empire

More From FXEMPIRE:

Recommended For You

About the Author: kevinbishop