EUR/USD Breaks Bear Flag and Continues Wave 3

Chris Svorcik Elite CurrenSea

Meta description: The bearish pressure is most likely part of a wave C (blue) which would become confirmed once price makes a strong bullish bounce via a bullish 5 wave pattern on lower time frame.

EUR/USD

4hour

The EUR/USD bearish momentum is still intact but price has not been able to break below the key support zone as yet. For the moment, the bearish pressure is most likely part of a wave C (blue) which would become confirmed once price makes a strong bullish bounce via a bullish 5 wave pattern on lower time frame. This would also confirm the wave 4 (pink) correction whereas a bearish break below the 50% Fibonacci level would make a downtrend more likely.

1 hour

The EUR/USD made a bullish retracement to the 38.2% Fibonacci level at 1.2250 and bounced at the resistance trend line to complete a wave 4 (orange). Price is now falling as part of a bearish wave 5 (orange), which could either complete the downtrend or be part of a wave 3 (green) with one more lower low. As long as price stays above the 1.21-1.22 support zone, price is vulnerable for a bullish reversal.

Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

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