Our EUR/USD wave analysis was expecting a bearish wave 4-5 (green) pattern within a wave C (blue). The bearish breakout indeed confirmed our bearish view. However, the momentum is much stronger than expected. Price could be building a larger bearish wave 3 (rather than a wave C) if it’s able to break below the 100% Fib of wave 2 vs 1 at 1.0881.Also, Ultima EA had massive wins with the +/- 7 shorts on the EUR/USD. The winning streak is sending the account sky high.
The EUR/USD made a pullback pattern after Friday’s NFP event. This has been labelled as wave 1-2 (dark red). Yesterday price was able to break the support line (dotted blue) for a new lower low, again. The bearish impulse remains strong, so the price swing has been labelled as a wave 3 (dark red). The current pullback could be a wave 4 (dark red) as long as price action stays below the 61.8% Fibonacci retracement level of wave 4 vs 3. A bearish breakout could confirm a move lower towards the Fib targets.
