The EUR/USD challenged and broke below the 1.1750 support zone and price continued with the downtrend yesterday. Price would need to break below the support trend line (green) and 1.1675 before a new bearish continuation could be expected whereas a bullish break above the resistance trend line (red) could indicate a larger bullish retracement within wave 4 (pink).
The EUR/USD is most likely building a wave 4 (green) correction as long as price stays below the 61.8% Fibonacci retracement level of wave 4 vs 3. A break above the 61.8% and bottom of wave 1 invalidates the current wave patterns. A bearish break below the support trend lines could see a bearish breakout towards the Fibonacci targets of wave 5.
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