EUR/USD rising wedge chart pattern is confirming a bearish reversal or retracement. How long can the bears keep control before the bulls step in? A head and shoulders pattern (purple boxes) could further aid the bears for a move down towards the wizz 7 target around 1.20.
Price Charts and Technical Analysis
The EUR/USD had several warnings signals indicating the end of the uptrend:
The double divergence between the tops (orange lines).
The rising wedge reversal chart pattern.
The break below the wedge and the 21 ema zone zone.
The strong bearish price action after the break in step 3.
Price action has in the meantime reached its first target at the 144 ema zone. This could provide support for a bullish bounce, eventually.
But considering the strength of the bearish decline, a fall towards the wizz 5 target and 233 ema could take place first.
After that, a bullish retracement has the best odds. Either via a bear flag chart pattern or via an ABC retracement back to the resistance zone.
A head and shoulders pattern (purple boxes) could further aid the bears for a move down towards the wizz 7 target around 1.20.
On the 1 hour chart, price action could build a 5 wave pattern (grey). Once the wave 3 is completed, a bullish pullback in wave 4 towards the resistance line (orange) is likely.
After that, we expect a bearish drop for a wave 5 to complete the wave A (purple) on the 4 hour chart.
