The EUR/USD bearish momentum broke below a key support zone (dotted green) but did not yet reach the 161.8% Fibonacci target which is the minimum for an impulsive wave 3. Price usually goes further than this Fib target. The reason for this is because price might be building a shallow retracement within the downtrend. However, price should stay below the previous resistance (red) otherwise a bullish wave structure might still be more likely.
The EUR/USD could test the broken support zone and continue with the downtrend via the wave 3 (green). Price would need to test and bounce at the Fibonacci retracement levels of a wave 4 (orange). A break above the 61.8% Fib makes a wave 4 scenario unlikely at the bearish trend could be in danger.
