? EUR/USD Breaks Bear Flag and Continues Wave 3 ?

Hi traders,

the EUR/USD bearish momentum is still intact but price has not been able to break below the key support zone as yet.

EUR/USD

4 hour

For the moment, the bearish pressure is most likely part of a wave C (blue) which would become confirmed once price makes a strong bullish bounce via a bullish 5 wave pattern on lower time frame. This would also confirm the wave 4 (pink) correction whereas a bearish break below the 50% Fibonacci level would make a downtrend more likely.

1 hour

The EUR/USD made a bullish retracement to the 38.2% Fibonacci level at 1.2250 and bounced at the resistance trend line to complete a wave 4 (orange). Price is now falling as part of a bearish wave 5 (orange), which could either complete the downtrend or be part of a wave 3 (green) with one more lower low. As long as price stays above the 1.21-1.22 support zone, price is vulnerable for a bullish reversal.

Good trading,

Chris Svorcik
Elite CurrenSea

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