The EUR/USD remains indecisive after a bearish bounce at the resistance trend line (red) yesterday. Price could be building a larger ABCDE contracting triangle pattern (orange).
The EUR/USD bullish bounce at the Fibonacci levels of wave D vs B could confirm the triangle pattern within a wave 4 (green) correction. In this case, a bearish breakout is expected after price breaks below the 100% Fib and bottom of wave B (orange). This bearish outlook is invalidated if price is able to break above the 100% Fibonacci level of wave C vs A.
The EUR/USD alternative scenario is mentioned on the 1 hour chart. Price could also be building bearish wave 1-2-3 (orange) pattern if price is able to show strong bearish impulsive price action that can break below the 161.8% Fibonacci level of wave 3 vs 1 (brown).
The analysis has been done with the CAMMACD.MTF template.
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