EUR/USD challenging key 50% fibonacci support zone at 1.1825

EUR/USD has been unable to break above the previous top. Price action is now testing the bottom of the 21 ema zone. This is a key decision zone for a bounce or breakout.
The EUR/USD break below the 144 ema confirms the end of the wave B (pink) and the bearish decline within wave C (pink).

Chris Svorcik Elite CurrenSea

Price Charts and Technical Analysis

The EUR/USD break below the 144 ema confirms the end of the wave B (pink) and the bearish decline within wave C (pink).

The main targets for the bears are the 61.8% and 78.6% Fibonacci retracement levels and the -27.2% target.
A bounce at the Fibs (blue arrow) could confirm the bullish wave pattern (purple).
A bearish breakout below the previous bottom at 1.1602 invalidates (red circle) the bullish wave 1/a and 2/b pattern (purple).

A bullish breakout above the resistance could indicate a surprise turn for an immediate upside (green arrows).

On the 1 hour chart, price action seems to be breaking below the 50% Fibonacci level.

If price pushes below this Fib level and the top of wave 1 (green box), then the 5 wave pattern (green) is invalid.
In that case, a bearish 5 wave (red) pattern is likely to take price action lower within wave C (pink).
A bullish bounce at these Fibs without breaking support (green box) and then followed by a bullish breakout could indicate a wave 5 (green arrows).

The analysis has been done with the ecs.SWAT method and ebook.

Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold holds gains near $5,000 as China's gold buying drives demand

Gold price clings to the latest uptick near $5,000 in Asian trading on Monday. The precious metal holds its recovery amid a weaker US Dollar and rising demand from the Chinese central bank. The delayed release of the US employment report for January will be in the spotlight later this week.

Bitcoin Weekly Forecast: The worst may be behind us

Bitcoin price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.