The EUR/USD is making a short pause after breaking below the support of the large consolidation zone (dotted blue). Will the EUR/USD be ready to continue the downtrend?
The pullback could be part of a wave 4 (green) pattern as long as price stays below the 50% Fibonacci level of wave 4 vs 3. A bearish bounce could see a bearish continuation towards the Fibonacci targets such as the 161.8% Fib at 1.1280.
The EUR/USD showed strong bearish momentum which is probably a wave 3 (green). The current retracement is a wave 4 unless price manages to break above the 50% Fibonacci level of wave 4 vs 3. A break below the support (blue) line of the chart pattern indicates a bearish breakout and continuation.