the EUR/USD rising wedge chart pattern is confirming a bearish reversal or retracement. How long can the bears keep control before the bulls step in?
The EUR/USD had several warnings signals indicating the end of the uptrend:
Price action has in the meantime reached its first target at the 144 ema zone. This could provide support for a bullish bounce, eventually.
But considering the strength of the bearish decline, a fall towards the Wizz 5 target and 233 ema could take place first.
After that, a bullish retracement has the best odds. Either via a bear flag chart pattern or via an ABC retracement back to the resistance zone.
A head and shoulders pattern (purple boxes) could further aid the bears for a move down towards the Wizz 7 target around 1.20.
On the 1 hour chart, price action could build a 5 wave pattern (grey). Once the wave 3 is completed, a bullish pullback in wave 4 towards the resistance line (orange) is likely.
After that, we expect a bearish drop for a wave 5 to complete the wave A (purple) on the 4 hour chart.