According to the technical analysis of EURUSD conducted by Masterforex-V Academy, the downswing has stopped at 62% Fibo level = 1,3537/42. This is the retracement grid for a(C ) H8 - between 1,3477 and 1,3645.
The experts say that if the price breaks below the base of the upward wave or consolidates below the new stating point at 1,3542, it will give way to a new bearish wave of wave level H8 since the FZR H4 will be completed.
The downward targets are:
- 1,3516 = 76%;
- 1,3508 = pivot 2;
- 1,3496 = 88%
The alternative scenario implies an upward move with breaking above 1,3583, which will complete the bullish FZR, thereby reversing the minor mid-term trend for an uptrend. In order for this scenario to manifest itself, the price has to overcome 1,3645,1,3629 and 1,3633. If this is the case, the upward targets are:
- 1,3581/83 = 38% + pivot;
- 1,3594 = 50%;
- 1,3606 = 62%;
- 1,3621 = 76%;
- 1,3633 = 88%.
If the price breaks above 88%, there will be a new upswing represented by wave a(C ). Then it will be followed by b(C ) – retracement, and a new upswing to break the local high.
