The EUR/USD seems to have completed a shallow wave 4 (purple) retracement. The current momentum and pullback pattern is probably a wave 1-2 (orange).
This article reviews the bullish targets – as well the bearish wave outlook if price action breaks below the 21 ema zone.
A bullish breakout (green arrow) above the resistance (orange) confirms the uptrend continuation. The main targets are located at 1.2250, 1.2350 and even 1.25.
Price Charts and Technical Analysis
The uptrend could see multiple higher highs before finishing. The wave patterns suggest that price could be in a wave 3 (pink) of wave 3 (blue).
A break below the 21 ema zone (orange arrows) means that price action is probably building a deeper wave 4. Price action could fall towards the 144 ema zone and expect a bounce there (blue arrows).
On the 1 hour chart, price action is looking for a bullish breakout above the resistance (orange) to confirm the uptrend.
A break below the bottom of wave 1 invalidates (red circle) the current wave 1-2 (grey) outlook. A deeper retracement is expected but the uptrend remains intact.
