The EUR/USD is building a falling wedge reversal chart pattern, which could indicate a potential bullish reversal if price manages to break above the resistance trend line and zone.
The EUR/USD is at new bounce or break spot. A bullish breakout could indicate the start of a larger wave 4 (pink) correction whereas a bearish bounce could indicate the continuation of the downtrend.
The EUR/USD seems to have completed 5 bearish waves (green) which could also indicate the end of wave 5 within wave 3 (pink). A retracement could see price move up towards the Fib levels of wave 4 but price could also bounce at the current resistance and continue lower towards Fib targets of wave 5. This will depend on the candlestick patterns that appear at resistance.
