The EUR/USD is showing a bullish reversal at an important support level (green) and price is now approaching a resistance trend line (orange) which will be a key decision zone.
The EUR/USD bullish breakout above that resistance trend line (orange) could indicate the potential for a larger bullish move. A bearish bounce occur first as price makes a retracement back the inverted head and shoulders pattern before a bullish breakout could take place.
The EUR/USD is showing strong bullish momentum. The push up is probably an impulsive wave 3 (blue) and a continuation could be part of a wave 5 (blue) of wave A (purple). The Fibonacci retracement levels of wave 4 vs 3 are expected to act as potential support levels.
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