The EUR/USD seems to have completed a wave 4 (orange) after completing a bear flag chart pattern. A break below the support line (green) could confirm (green check) the bearish breakout towards the Fibonacci targets. The main target is the 1.0950-1.10 zone. A breakout above the resistance line (red) could invalidate (red x) the bearish wave outlook.
The EUR/USD bullish retracement seems to be a wave 4 (dark red) pullback. The Fibonacci levels are expected to act as resistance levels for a bearish continuation (orange arrows) below the support zone (green check). An expected rally above the 61.8% Fib of wave 4 vs 3 would invalidate (red x) the current wave outlook.
