EUR/USD Downtrend Continuation After 1.10 Support Level Break

The EUR/USD made a bullish bounce after breaking the round psychological 1.10 support level. The resistance line (red) and wave 4 (orange) pattern, however, make a bearish bounce likely.
Chris Svorcik
EUR/USD daily chart, November 12, 2019

EUR/USD

4 hour

The EUR/USD bearish continuation could take place if price is able to make a bearish bounce and breakout (green checks). The main target is the 78.6% Fibonacci level at 1.0940-50, which is where the wave 2 (purple) pattern is expected to be completed. A break above the 144 ema and below the 100% Fibonacci level invalidates (red x) some part of this wave outlook.

1 hour

The EUR/USD is testing and bouncing at the 38.2% Fibonacci retracement level of wave 4 (orange). A break above the 61.8% Fib of wave 4 vs 3 invalidates (red x) the wave pattern whereas a breakout could confirm (green checks) the final push of waves 5 of wave C (blue).

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Good trading,
Chris Svorcik
Elite CurrenSea

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