the EUR/USD is breaching the 144 ema support zone. This indicates bearish pressure. A breakout could confirm the decline in wave C (pink). Let’s review the chart and wave patterns.
The EUR/USD needs to push below the support trend line (green). This confirms the bearish break and ABC (pink) zigzag pattern (orange arrows).
The main target is located at the confluence of the -61.8% Fibonacci target and psychological round level at 1.20 (blue box).
A break above the resistance trend line (orange), however, indicates a bullish retracement first (green arrows). The main resistance zone is at the Fibonacci levels of wave B (pink).
The ABC pattern could complete a larger wave 4 (purple) of the uptrend.
On the 1 hour chart, a completed ABC (grey) pattern is visible within wave B (pink). The bearish price action is clear with lower lows and lower highs. The trend line (orange) is another confirmation.
But price action will need to push below support to start the breakout. Otherwise a counter trend retracement does linger as a danger.