Today we are going to look at the euro/U.S. dollar (EUR/USD) currency pair, it's 4-hour and daily view.
On the 4-hour we can see EUR/USD trading bullish, now seen in final stages of a Red Wave v) of five, which means upside can be limited in the next couple of days. Specifically, we see price trading within Black Wave v of v), with a potential projection zone of 161.8 Fibonacci ratio. Ideally there, the bulls will slow down and bears will take charge. A reversal and break beneath the previous swing low of Wave iv at 1.1649 level will confirm a change in trend.
Below, we see a daily chart of the EUR/USD, which gives us an insight of where the price could go if it reverses. The turning point that can happen on the 4-hour chart would be a start of a higher degree three wave correction of Wave 4 that we expect to unfold in the next days or weeks. This higher degree correction would be only temporary, which means we would still expect more upside to follow, once it fully unfolds.
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All our work is for educational purposes only.