? EUR/USD Builds Bearish Impulsive Wave 3 Pattern ?

Hi traders,

The EUR/USD is extending the bearish price action with a new low. The EUR/USD is now re-challenging a key support trend line. The wave patterns are complex and choppy but a wave X (pink) still seems most likely unless price breaks below the 1.15 support zone.

EUR/USD

4 hour

The EUR/USD break below the 1.15 support could indicate that a different wave pattern is likely. In that case, the main wave pattern is probably not WXY (pink) but price could have completed a wave 4 and is in a bearish wave 5. The 5th wave is aiming for 1.1450.

1 hour

The EUR/USD seems to have built a 123 pattern (green) rather than an ABC because price broke below the bottom of wave A (blue), which invalidated yesterday’s bullish ABC zigzag pattern. A pullback could see price bounce at the Fibonacci levels of wave 4 vs 3 (green) for a continuation lower as part of wave 5 of C. A break above the Fibs and trend line could change the wave perspective.

Good trading,
Chris Svorcik
Elite CurrenSea