the EUR/USD bears are fully in control at the moment. The bearish breakout below the support line (dotted green) is expected to make an extension towards the 78.6% Fibonacci retracement level of potential wave 2 (purple).
The EUR/USD seems to be completing an ABC (blue) flat correction. The current bearish swing is potential wave C (blue), which includes 5 impulsive (green) waves. The current wave 1-2 (purple) pattern remains valid (red x) as long as price stays above the bottom and 100% Fib level. A push higher and above the 1.1050 resistance could confirm (green check) a bullish reversal.
The EUR/USD seems to be extending the 5th wave (green) with another 5 waves (orange/dark red). Another bearish push below the support (blue) could confirm (green check) the breakout as long as price stays below the key (red x) resistance level (red). Price is expected to fall towards the Fibonacci targets.
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