the EUR/USD is building a bearish pullback within the long-term uptrend. Price action is expected to build either an ABC or ABCDE triangle pattern (pink) on the daily chart.
This article reviews what price movement to expect during the pullback. We also analyse the key support and resistance zones.
The EUR/USD seems to have completed a wave 3 (purple) at the recent high. This means that the current pullback is likely a wave 4 (purple).
Only a break below the 50% Fib would put the uptrend on hold (yellow circle). An even deeper retrace would invalidate it (red circle).
On the 4 hour chart, the bearish price action respected the previous bottom and made a bullish bounce. This seems to confirm a bullish ABC (orange) in wave B (grey).
A break above the 21 ema zone could confirm a 5 wave (orange) pattern up in wave C (grey) to complete wave B (pink).
A bearish bounce at or below the 61.8% Fibonacci level makes a bearish ABC zigzag more likely. A deeper retracement towards the 78.6% Fib or higher makes an ABC flat or ABCDE triangle more likely (light green letters).