The EUR/USD has broken below the critical 1.0880-1.09 support zone. This invalidates the previous analysis which expected a bullish reversal at 1.09. The current momentum and wave 3 is expected to push further in February. A pullback to the 21 ema zone and resistance trend line (red) might occur. But price action is expected to continue towards the 1.0750 support zone.
The EUR/USD is either building a minor wave 4 (light blue) or a deeper wave 4 (dark red). The shallow wave 4 (light blue) remains likely as long as price stays below the 50% Fibonacci at 1.0855. But a break above this 50% Fib makes a deeper wave 4 (dark red) and larger bear flag more likely. Price could retrace towards 1.09-1.0950 at the 38.2-50% Fibs of wave 4 vs 3. A bearish breakout is aiming for the 200% Fib at 1.0750-25.
