In my view, the EUR/USD still has a better chance of making a bullish bounce at the 1.12 support zone (blue lines). The current wave outlook favor the end of the wave 2 (purple) after a WXY correction (blue). A bullish rally could make a wave 3 (purple) more likely but the real confirmation occurs if price is able to break above the resistance trend line (red). A break below the support lines invalidates the current wave pattern and indicates a potential downtrend towards 1.11 and 1.10.

The EUR/USD seems to be building a small bullish bounce after hitting the support trend line (blue) which could be a first wave 1-2 (blue) of a new direction. The current sideways movement could be explained by a lengthy WXY (blue) correction. A bullish breakout above the resistance trend line (red) could see price move up higher towards the Fibonacci targets of wave 3 vs 1.

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