The EUR/USD downtrend channel after bouncing at the 38.2% Fibonacci retracement level of wave 4 (purple) is mild and choppy. This could indicate that the wave 4 could expand into a larger sideways consolidation or triangle. A bearish breakout could indicate the restart the downtrend but could also lead to larger wave X (orange) correction. Keep in mind that later today there is USD interest rate decision.

EUR/USD broke multiple support trend lines (dotted green) but price action is now building a new sideways zone. A new bearish breakout could see price test the next support zones around 1.1650, 1.16, and 1.1550. A bullish breakout could indicate a larger bullish correction towards the 50% Fib on the 4 hour chart.

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The Wave Analysis it for today the most flexible, powerful and perspective tool which allows to predict tendencies which lead to certain changes on financial charts on all time pieces. One of properties of this tool is its insufficient formalisation, proceeding from it the opinion of the author of the forecast made on the basis of the Wave Analysis always is subjective. As the Wave Structure constantly varies, the forecast on the basis of the Wave Analysis reflects opinion of the author at the moment of the forecast publication. The Wave Analysis is not trading system. It not the generator of signals on the conclusion or an exit 1from the transaction, therefore the schematical direction of movement of the price put on the chart should not be for the trader the guide to action on opening of positions. In case of formation in the market of conditions which, according to the author it is possible to use for drawing up of the trading plan - on a chart levels of acknowledgement of the chosen scenario, optimum areas of an input and levels of cancellation of the chosen scenario will be specified in addition.


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