the EUR/USD is moving higher in a bullish channel and price is now retesting a key resistance zone. The bullish bounce could indicate the end of the wave B (red) and the start of wave C (red) if price manages to break above the resistance levels.
The EUR/USD would turn bearish again if price is able to break below the previous bottom and the support trend line (blue) of the bearish channel. In that case a continuation of the wave C (purple) is still likely to take place.
The EUR/USD seems to have completed 5 bullish waves (purple) within wave 1 (pink) but one more bullish breakout could indicate a continuation towards the Fibonacci targets of wave 5 vs 1+3. A bearish breakout below the channel support could simply be part of a wave 2 (pink) retracement.
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.
Good trading, Chris Svorcik