the EUR/USD bearish price action remains intact as price sinks lower and lower. The EUR/USD is now approaching two support levels for a key bullish bounce or bearish breakout at a critical decision zone (blue lines).
The EUR/USD bearish breakout invalidates that bullish wave 1-2 (green) pattern and makes a bearish 123 (red) wave pattern more likely. The breakout will determine the next potential price swing, as indicated by the arrows. A bullish bounce and break aims for the 23.6% Fibonacci retracement level whereas a bearish breakout aims for the Fibonacci levels of wave 3 vs 1.
1 hourThe EUR/USD could be building a wave C (orange) within the wave 2 (green) correction as long as price stays above the 100% Fibonacci. Waves 2 are often deep and the 78.6% and 88.6% Fibonacci retracement levels are usual for such a wave pattern. A bearish breakout however invalidates the bullish scenario and makes a bearish outlook more likely (orange arrows). In that case a wave 3 (red) impulse could be expected.
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Good trading, Chris Svorcik