EUR/USD breaks channel resistance with bullish wave-3 momentum

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EUR/USD broke the resistance trend line (dotted red) of the bearish trend channel with strong momentum. This is indicating that the downtrend is completed and more upside is likely. The bullish price action indicates that the wave 4 (light purple) is completed and price is expected to continue within the wave 5. The current momentum is typical for a wave 3 pattern (pink).

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The EUR/USD is probably building multiple wave 3s now. The current wave 3-4 (blue) is building a bull flag pattern which could see an immediate bullish break or a bearish retracement towards the Fib levels of wave 4 vs 3 (blue).

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Origin: Admiral Markets

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