The EUR/USD broke below the support trend line of the falling wedge chart pattern. The EUR/USD has now reached a key support zone at the 1.15 psychological round level and is also close to a 50% Fibonacci level of the weekly chart.
The bearish breakout saw the EUR/USD fall from 1.17 earlier this week to 1.15. Whether the round level of 1.15 is strong enough to stop price remains to be seen. A new bearish breakout could aim at 1.1450-1.1475 whereas a bullish bounce and break above the resistance trend lines could finally start a bigger bullish correction.
The EUR/USD broke below the bear flag chart pattern mentioned yesterday and made a strong bearish breakout. It is possible that the EUR/USD is expanding the wave 5 (green) with an expanded 5 waves (orange) but price needs to break below the support trend line (green) and must remain below the bottom of wave 1 (orange) at 1.1607 otherwise a different wave pattern is valid. A break above resistance (red) could finally see a bullish retracement.
