EUR/USD False Bull Flag Breakout Restarts Downtrend Again

Chris Svorcik Elite CurrenSea

Meta description: The EUR/USD made a false bullish breakout above the bull flag chart pattern. The bullish breakout did see price make a new higher high but a quick and dramatic reversal saw price fall strongly. The push lower could complete a wave 5 at the Fibonacci target.

EUR/USD

4 hour

The EUR/USD made a false bullish breakout above the bull flag chart pattern. The bullish breakout did see price make a new higher high but a quick and dramatic reversal saw price fall strongly.

The EUR/USD still bounced at the Fibonacci levels of wave 4 (pink) and broke the two support trend lines for a bearish breakout. The bearish momentum is now aiming at the Fibonacci targets of wave 5.

1 hour

The EUR/USD made a new higher high but quickly reverted lower with impulsive bearish price action. The price broke below the support trend line (dotted) and rebroke below the broken resistance. The push lower could complete a wave 5 at the Fibonacci target. Price could also retrace back to the moving averages first which is a potential resistance zone.

Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

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