The EUR/USD is building a contracting triangle pattern and is awaiting a bullish or bearish breakout. A bullish breakout would make the wave X (pink) correction more likely whereas a bearish breakout could also indicate a downtrend.

Another key support zone for the EUR/USD is the 78.6% Fibonacci retracement level and a break below that could make the wave X (pink) less likely.

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The EUR/USD made a pullback to the 23.6% Fibonacciretracement level of wave 4 vs 3, which has acted as resistance so far. A breakout below the support trend line (blue) would indicate a continuation lower. This could be as part of a wave 5 (blue) of wave A (purple) unless price breaks below the 78.6% Fib of the 4 hour chart because then a downtrend could be in play.

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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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