Bearish EUR/USD outlook strengthens following post-NFP selloff

EUR/USD finally looks ready to resume lower as the market broke sharply down on Friday following the strong NFP report from the US. We can see that price is now trading below the four hour trend line support connected from the March lows, which likely suggests that we are continuing lower into wave C. This structure should unfold in five waves, so there can still be some rallies in the near future, but any bounce will be viewed as a black wave four that could later find resistance at 1.1577.

The invalidation level has now moved lower towards 1.1652. However, if that level is touched, then of course we could see a bit more recovery, but it would still be viewed as part of a bearish sequence that should sooner or later start attacking those March lows.

Also, when looking at the daily chart and this current reversal lower towards 1.1630, it makes us think that sooner or later a higher degree wave C could appear and bring the pair back towards the 1.1300 to 1.12 area shown on the updated wave structure.