EUR/USD finally breaks out to the downside and falls to the lowest level since June 2020. Near term outlook is staying bearish and next target is 61.8% projection of 1.1908 to 1.1185 from 1.1482 at 1.1035.
The biggest question is indeed in the long term picture. As seen in the monthly chart, an interpretation is that price actions from 1.0339 (2017 low) are a three wave consolidation pattern that has completed at 1.2348, after double rejections by 38.2% retracement of 1.6039 to 1.0339 at 1.2516. If that’s the case, a break through 1.0339 low would be eventually be seen.
Of course, it’s still a bit early to tell if the above bearish case is true. And that is unlikely to be revealed soon, at least not by first half of the year. But it’s something that is worth noting.
