EURUSD Remains Bearish As Wave 5 Could Target The 1.11–1.10 Area

EURUSD remains under bearish pressure following a corrective pullback in wave 4, which appears to have developed into a bearish running triangle pattern. This suggests that the final wave 5 of (A) could now be in progress, leaving room for further downside toward the 1.11–1.10 support area.

In the current EURUSD structure, the potential completion of wave 4 suggests that the market may be entering the final leg lower in wave 5. As long as bearish pressure persists, the 1.11–1.10 area remains a potential downside target where the current impulsive decline could come to an end.

However, traders should also keep the broader wave structure in mind. Once the five-wave decline within wave (A) is complete, we could expect a larger, higher-degree corrective recovery in wave (B). Such a recovery could retrace a portion of the preceding decline before the market potentially resumes its bearish trend in a subsequent wave (C).

From an Elliott Wave perspective, a bearish impulsive move typically consists of five waves: waves 1, 3, and 5 move in the direction of the prevailing trend, while waves 2 and 4 represent corrective pullbacks. Once the five-wave impulse is complete, the market can enter a larger corrective phase, typically unfolding as a three-wave ABC recovery against the preceding trend.

For now, the focus remains on the potential completion of wave 5 and the 1.11–1.10 target area. While further downside remains possible in the near term, the completion of the current five-wave structure could open the door to a more substantial corrective recovery.