the EUR/USD made a bearish breakout below the support trend line (dotted blue) but the round 1.10 level is blocking the price from a larger decline.
The EUR/USD downtrend is struggling to continue lower due to the lengthy consolidation zone. A bearish breakout below the support (blue) indicates a downtrend continuation towards the double bottom (blue box) and perhaps lower towards the Fibonacci targets of wave 5 vs 1+3.
The EUR/USD bearish momentum could be a wave 3 (orange) pattern as long as the price stays below the 38.2-50% Fibonacci retracement levels of wave 4 vs 3. A break above the resistance levels indicates a continuation of the range and sideways pattern whereas a bearish break could be part of a wave 5 (orange).
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Good trading, Chris Svorcik