? EUR/USD Bearish Momentum Challenges Support Zone of Range Pattern ?

2 min read

Hi traders,

The EUR/USD fell down towards the bottom of the sideways range (blue line) and 100% Fibonacci level of wave X (purple), which is a new decision zone for a bullish bounce or bearish breakout.

EUR/USD

4 hour


The EUR/USD is building a large corrective pattern and consolidation zone. Price has again reached the bottom and potential support. A larger bullish correction is possible via a WXY (purple) pattern unless price breaks below the support trend line. A bearish breakout is certainly possible when considering the strong bearish momentum.

The EUR/USD could have completed an ABC (blue) zigzag pattern but it depends how the price patterns that develop at the Fibonacci targets. If price moves sideways and builds a bear flag pattern, then a wave 3 rather than a wave C (blue) becomes a more likely scenario. A strong bullish bounce and break above the resistance trend line (orange) however would confirm the development of an ABC within wave X.

Good trading,
Chris Svorcik
Elite CurrenSea

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