🌟 EUR/USD False Bullish Break above Downtrend Channel 🌟

3 min read

Hi traders,

The EUR/USD tried to break above the resistance line (orange) of the downtrend channel but price ultimately made a false breakout. Price has now broken below the support trend line (dotted blue) instead which could extend the bullish correction.

EUR/USD

4 hour


The EUR/USD seems to have completed a bullish ABC zigzag pattern (green). The bearish breakout could indicate more downside pressure but the overall chart pattern remains corrective, which means that the EUR/USD could bounce back up again at the Fibonacci retracement levels. The corrective price action is likely to stay unless price manages to break below the support trend line (blue).

1 hour


The EUR/USD is building a complex correction but there are multiple wave variations that are equally likely at the moment. Rather than a WXY (blue) correction, price could also be expanding the bearish wave B (green) as long as price stays above the 100% Fibonacci level of wave B vs A for instance. In that case a WXY (orange) correction would take place within wave B (green). A break below the 100% Fib however indicates a larger bearish WXY (blue) correction most likely as part of a wave X (purple).

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Good trading,
Chris Svorcik
Elite CurrenSea

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