the EUR/USD is testing the resistance zone around 1.10 within a larger downtrend. Will the bears regain control or can the bulls force a reversal?
The EUR/USD downtrend is likely to continue lower again after the bullish retracement. The main question is how far will the price action move up before it fails to break resistance. The key decision zone is around 1.0950-1.1025: a bearish bounce confirms the downtrend via wave 3 (blue) whereas a bullish breakout makes a reversal likely.
The EUR/USD is testing the Fibonacci resistance levels of wave 4 vs 3 and the trend lines (red). A deeper bullish retracement is possible if price action stays above the support line (blue). Ultimately though, a larger bearish reaction is expected at the resistance zone (red) for a downtrend continuation unless price is able to break above 1.1025.
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.
Good trading, Chris Svorcik