The EUR/USD main target is at 1.0940-50 whereas a minor target zone is located around 1.0975. A bearish breakout (orange arrows) could confirm (green check) the wave 5 (green) pattern of a larger wave C (blue) of wave 2 (purple). A bullish reversal candlestick pattern in the target zone could indicate the end of that wave 2 (purple) and a potential new uptrend.
The EUR/USD is building a small bear flag chart pattern, which is usually a continuation pattern. The strong bearish momentum prior to the flag also indicates that bears are likely to keep control and push price action below the flag. A breakout would confirm (green check) the move towards the Fibonacci targets whereas an unexpected break above the 61.8% Fib and resistance trend line (red) invalidates (red x) the wave 4 (dark red).
