the EUR/USD made a deeper retracement back to test the support levels of the consolidation zone (blue lines). The 78.6% Fibonacci retracement level is expected to provide support and a potential bullish reversal as part of a wave 1-2 pattern (green).
A break above the resistance trend line (red) would indicate a bullish breakout towards the Fibonacci targets of wave C vs A. A break below the 100% Fibonacci level of wave 2 vs 1 however would invalidate the wave 2 pattern. Bearishness is only expected if price is able to break below the bottom of the consolidation zone (orange arrows).
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Good trading, Chris Svorcik