Article details
The short-term technical outlook for EUR/USD indicates a five-wave impulsive decline according to Elliott Wave analysis. Following a peak on August 21 at 1.1654, wave (i) completed at 1.1566, followed by a corrective wave (ii) rally to 1.1654. The currency pair has now resumed its broader downward path within wave (iii), signaling sustained selling pressure on the euro against the U.S. dollar.
This technical breakdown highlights strong bearish momentum for the single currency amid broader macroeconomic divergences. Technical traders are closely watching internal wave subdivisions to confirm if wave (iii) will extend further downward. A break below recent local lows could accelerate short-selling activities and drive the pair toward lower structural support zones.
Traders and market participants should track key resistance levels near 1.1654 to assess the validity of this Elliott Wave count. A surge above recent reaction highs would invalidate the current bearish count, whereas continued weakness reinforces the likelihood of reaching further target projections to the downside.
