the EUR/USD broke below the support zones for a bearish breakout as expected. The bears remain in control and aim for 1.10 support.
The EUR/USD chart remained bearish after lower highs were confirmed earlier in January. The pullbacks were labelled as waves 4 (orange / dark red), which indeed proved to be correct as price broke below the support trend lines. The current push lower is probably a wave 3 (green) of a larger ABC (blue) correction.
The EUR/USD remains bearish as long as price action stays below the resistance zone (red) at the consolidation area. A bullish break invalidates (red x) the wave outlook whereas a bearish continuation confirms (green check) the downtrend. The main target zone is the 1.0950-1.10 support zone.
The analysis has been done with SWAT method (simple wave analysis and trading).
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