The 150-period Moving Average has acted as resistance once again, so the second wave of wave C has been completed. Previously, we saw a triangle in wave B and a leading diagonal pattern, which supposed to be wave ((i)). Thus, the current decline is likely to be wave ((iii)) of C, which means the low of wave ((i)) at 1.1064 is going to be broken soon.
Broadly, wave (A) finished as an upward impulse and wave (B) is taking the form of a zigzag pattern. That’s why we should watch the 0.786 retracement level of wave (A) at 1.0805 as a potential target for the developing correction. The subsequent pullback from this level could be a starting point for another rally.
The main critical level for this scenario is the last local high at 1.1284. If the price goes through this level before the low of wave ((i)) at 1.1064, the bearish outlook will be overclouded. For a target for wave ((iii)), we should monitor the 1.618 multiple of wave ((i)) at 1.0858, which could be a starting point of the fourth wave.
The bottom line is that EUR/USD remains bearish, and there’s no any bullish sign so far. The developing third wave is going to continue, so the price is about to make a new low.