EUR/USD Remains in a Bearish Trend

EUR/USD continues to trade within a well-defined bearish structure on the daily chart after failing to break above the primary descending trendline. Price is currently developing Wave (iii) and is expected to stage a short-term Wave (iv) pullback before the downtrend resumes.

As long as the pair remains below the descending trendline, the overall bearish outlook remains intact.

Sell Zone in Focus

The highlighted blue resistance area represents a potential sell zone, where sellers could regain control of the market.

If price retraces into this area and fails to break above the descending trendline, it would strengthen the probability of Wave (v) beginning, in line with the Elliott Wave structure.

Downside Target at 1.11190

Following the expected Wave (iv) correction, EUR/USD is projected to continue lower toward 1.11190, which aligns closely with the 423.6% Fibonacci Extension.

This zone also represents a significant support area where bearish momentum may begin to slow and profit-taking could emerge.

Momentum Continues to Favor Sellers

The Awesome Oscillator (AO) remains below the zero line, indicating that bearish momentum is still dominant despite the possibility of a short-term rebound.

Traders should monitor:

• Price reaction inside the sell zone.
• Bearish candlestick confirmation before considering short positions.
• Momentum behavior to validate the start of Wave (v).

Conclusion

EUR/USD maintains a bearish market structure while trading below the descending trendline. A limited pullback into the resistance zone may offer a selling opportunity before the pair resumes its decline toward the 1.11190 target, supported by both Elliott Wave analysis and Fibonacci Extension projections.