EURUSD Extends Bearish Structure as Wave (v) Targets Lower Support Zone

Market Overview

EURUSD remains under bearish pressure after breaking below a key support area and continuing its decline within a broader corrective structure. The pair is currently trading beneath a major descending trendline, indicating that sellers remain firmly in control of market direction.

Recent price action suggests that the market is progressing through the latter stages of a larger corrective pattern, with downside risks continuing to dominate.

Technical Analysis

The chart highlights a developing A-B-C corrective structure, where wave (a) and wave (b) appear to have completed. Price is now likely advancing through wave (c), which is unfolding into a five-wave bearish sequence.

Wave (iii) appears to be nearing completion after the latest decline. A temporary corrective rebound in wave (iv) could emerge before sellers regain control and push the market lower into wave (v).

The descending trendline continues to act as dynamic resistance, while the previous support area has now turned into a resistance zone, reinforcing the bearish outlook.

Downside Target

If the current Elliott Wave structure remains valid, EURUSD could continue lower toward the projected wave (v) target near 1.11190, which aligns closely with the Fibonacci Extension 423.6% support zone highlighted on the chart.

This area represents a significant downside objective and could attract renewed buying interest once reached.

Alternative Scenario

The bearish outlook would weaken if EURUSD manages to reclaim the broken support zone and break above the descending trendline resistance. Such a move could indicate that the corrective decline is ending and a broader recovery phase is beginning.

Until that occurs, rallies are likely to be viewed as corrective moves within the prevailing downtrend.

Conclusion

EURUSD continues to trade within a bearish corrective structure, supported by a strong descending trendline and weakening momentum. The current wave count suggests that a short-term wave (iv) rebound may occur before the pair resumes its decline toward the projected wave (v) target around 1.11190. As long as price remains below key resistance levels, the bearish scenario remains the preferred outlook.