The EUR/USD is showing strong bearish momentum. How far can the EUR/USD sink before finding support?
The EUR/USD is close to a critical 50% Fibonacci retracement level near 1.1550 which could provide the currency pair with a bullish bounce. A strong bounce could indicate the end of the wave A (purple) or wave X (pink). In case it’s a wave A, price will build a bullish ABC up to complete wave B before falling back down again to finish wave C of wave X.
The EUR/USD could have completed the wave 4 retracement (blue) already and could be heading lower for a wave 5 unless price breaks above the resistance trend line (red). In that case price could expand the wave 4 correction via an ABC zigzag.