The EUR/USD made a bullish bounce at the 23.6% Fibonacci support level. Now price is trying to break above the 21 ema zone, which is a full uptrend alignment. But the price will need to make a break or flag to confirm it.
The EUR/USD is approaching a key resistance level (orange line). This is a head and shoulders zone that could create a reversal (orange dotted arrows) if the bearish price action is strong. But if price action goes sideways, then it’s a bull flag pattern. This indicates a bullish breakout. The same is valid if price action breaks the resistance zone and then builds a flag. Both patterns confirm a wave 3-4-5 (purple) pattern.
The main target is aiming for the next zone at 1.1475-1.15, which is the confluence of both the 100% Fib and Wizz 9 target. If price action does build a deeper retracement, then the next 38.2% Fibonacci level is expected to be a support together with the 144 ema. Only a break below the 50% Fib invalidates (red x) the bullish outlook and wave 4.
