the EUR/USD is showing choppy and corrective price action as price action moves slowly lower. This could indicate the end of a wave 3 (green) and the start of a wave 4 (green) pullback.
The EUR/USD could find resistance at the Fibonacci retracement levels of wave 4 vs 3. A bearish bounce at these Fibs could send price action down once more for a new low towards 1.0950 support. A wave 4 usually does not retrace above the 50% Fibonacci (red x).
The EUR/USD could be ready for a bullish ABC (orange) pattern now that price action has broken above the resistance trend line (dotted red). A bigger push (green arrow) towards the Fibs and resistance trend line (red) could occur if price action respects the Fibs of wave B vs A. However, a break below the 100% Fib indicates more downtrend.
The analysis has been done with SWAT method (simple wave analysis and trading).
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