EUR/USD Testing 1.11 Support After Failing to Break 1.12The EUR/USD made a deeper bearish retracement after failing to break above the resistance (red) trend line at 1.1175. Will price make a larger reversal or is the EUR/USD extending its pullback?
The EUR/USD is still above support and is now testing the support line (blue) of the uptrend channel. A bullish continuation still remains likely as long as price stays above the horizontal support (blue) at 1.1075. A break below this support invalidates (red x) the current wave patterns whereas a bullish breakout confirms (green check) the uptrend within wave 5 (blue).
The EUR/USD bearish retracement is testing the support Fibonacci levels of wave 4 vs 3. A bearish break could send price back towards the previous bottom (blue), which is a new decision zone for a break and invalidation (red x) or bullish bounce (green arrow). A bullish bounce, however, could indicate an uptrend (green checks) towards the Fibonacci targets of waves 5.
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