EUR/USD Bears In Control After Rising Wedge Break

The 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?

Price Charts and Technical Analysis

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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.

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