EUR/USD Resumes Wave C Decline Amid Renewed US Dollar Strength

EUR/USD is extending its downside trajectory as the pair resumes its Elliott Wave C decline, driven by a broad-based resurgence in US dollar demand. The technical structure suggests the euro is under sustained selling pressure, with wave analysis pointing to further downside potential as the corrective pattern unfolds. The renewed dollar strength appears rooted in improving US economic data, including a better-than-expected Michigan Consumer Sentiment reading, alongside easing inflation expectations that have not yet shifted Federal Reserve rate cut pricing materially. From a technical perspective, the Wave C formation typically represents the final leg of a corrective move, often producing sharp and extended declines. Traders should monitor key support levels closely, as a break below recent lows could accelerate the sell-off toward deeper Fibonacci retracement targets. Resistance overhead remains defined by the recent swing highs established before the current decline resumed. The bearish wave structure will remain valid as long as the pair trades below its corrective wave B peak. Traders should watch for volume confirmation and RSI divergence signals that may indicate wave completion.