The EUR/USD is expected to respect and bounce at the Fibonacci retracement levels of wave 4 vs 3. A break below the 61.8% Fib and support trend line (blue) invalidates (red x) the wave 4 pattern (blue). After price completes the correction in wave 4 (blue), price is expected to make a bullish run towards the Fibonacci targets at 1.16 and 1.17.
The EUR/USD is expecting an ABC (green) flat correction within wave 4 (blue). Within an ABC flat, price action should make an ABC within wave B (green) and 5 bearish waves (orange lines) within wave C of wave 4 (blue). The second most likely alternative is a triangle pattern. The least likely is a zigzag correction. The wave 4 (blue) is usually lengthy and could even expand into a complex correction. But keep in mind that the current market volatility remains high and price action could make impulsive movements at any moment.
