the EUR/USD seems be building a retracement. Will the EUR/USD break support for a bearish zigzag or will price break resistance (red) for an extension of wave 5 (blue)?
The EUR/USD will probably build a deeper bearish correction within wave 2 (purple). The wave 1 (purple) seems to have 5 waves completed (blue) and therefore an ABC correction is likely. If price does push higher above the resistance trend line (red), then the next target is 1.1075-1.1125 zone.
The EUR/USD seems to be building an ABC (blue) correction. A confirmation of the corrective pattern occurs when price is able to push below the support zone (blue). A bearish breakout is aiming for the 50-61.8% Fibonacci retracement levels of wave 2 vs 1. Price could even extend the fall as far as the 78.6% Fib. A bullish breakout still has one more layer of resistance (red) ahead, which could be a part of a larger wave B (blue) unless price breaks above both resistance lines.
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Good trading, Chris Svorcik