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EUR/USD failed first to break clearly above resistance at 1.0791 and then broke below the short-term key support at 1.0655 which has forced us to review our count for wave 4. With the break below 1.0655, we should expect wave 4 to move closer to support at 1.0498 before setting the stage for the next impulsive rally in wave 5 towards 1.1196 or higher.
The former support at 1.0655 will now act as resistance, but only a direct break above resistance at 1.0723 will again shift the focus towards the upside.
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