The EUR/USD bounced at the resistance trend line (red) as expected in yesterday's wave analysis. The bearish bounce indicated a continuation of the downtrend for a new lower low. Price is now challenging the support trend line which is new bounce or break spot. The trend lines themselves are presenting themselves as a falling wedge chart pattern which is a bullish reversal pattern but only if price manages to break above the resistance trend line (red).
The EUR/USD turned at the 61.8% Fibonacci resistance level of wave 4 (green) yesterday. Price then broke below the support trend line (dotted blue), which confirmed a bearish breakout within wave 5 without invaliding the wave 4 correction. Price is now testing a support trend line (green) which is new bounce or break spot.
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