The EUR/USD is expected to make a bearish bounce as part of a wave 4 (orange). A downtrend continuation could confirm (green check) the wave pattern and outlook and indicate a decline towards the Fibonacci targets. The bearish swing might complete a wave C (blue) of wave 2 (purple) correction after which a bullish reversal might kick in (green arrows).
The EUR/USD seems to be bouncing at the 38.2% Fibonacci retracement level of wave 4 vs 3. A bearish breakout could confirm (green check) the wave 4-5 (orange) pattern lower whereas a break above the 61.8% Fibonacci level invalidates (red x) the bearish wave outlook.
