Fx Promo Daily Analysis Day 26-10-2016

EUR/USD turn sharply and open bullish ABC zigzag

4 hour

The EUR/USD broke below the support (green) but price did now move far before a strong 4 hour bullish candle appeared. A bullish bounce could be possible despite the downtrend when considering the presence of divergence (purple lines) and the fact that price is still at a 61.8% Fibonacci level. A break above the resistance trend lines (light orange) could confirm the development of a wave d (green) on the daily chart, which is part of a larger weekly triangle.

1 hour

The EUR/USD seems to have completed a wave 4 and 5 within wave C (blue). The bullish momentum has been labelled as a wave A (purple) and the Fibonacci levels could be important if a bullish ABC zigzag (purple) indeed materializes.