EUR/USD Completes ABC Correction in Wave 4

September 25, 2018 09:18

EURUSD

4 hour

Source: Admiral Markets MT5 with MT5SE Add-on EUR/USD motive wave – Accessed: 25 September 2018 at 4:00 AM GMT

The EUR/USD currency pair continued higher within the bullish trend channel yesterday, but failed to break above the channel resistance (red). The price is now challenging again the support zone (green), which is a key decision zone for a bounce or break. A bounce could see the price move up to the Fibonacci targets, whereas, a bearish break below the support (green/blue) could see a larger correction take place.

1 hour

Source: Admiral Markets MT5 with MT5SE Add-on EUR/USD motive wave – Accessed: 25 September 2018 at 4:00 AM GMT

The EUR/USD currency pair could have completed an ABC (orange) correction within wave 4 (green) if the price manages to stay above the 50-61.8% Fibonacci support zone. A break above the resistance trend line (orange) could spark a wave 5 (green) breakout, but a break below the 61.8% Fib makes this scenario less likely.

Weekly

Source: Admiral Markets MT5 with MT5SE Add-on EUR/USD motive wave – Accessed: 25 September 2018 at 4:00 AM GMT

The EUR/USD currency pair seems to be moving up higher as part of a wave B (purple) within a larger ABC (purple) correction in wave B (red).

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.