the EUR/USD bullish channel remains unbroken although price action is now approaching a key resistance trend line (red) and decision spot for either a bearish bounce or new bullish breakout.
The strong EUR/USD rebound could indicate the end of wave B (red) and a larger bullish reversal despite the larger downtrend channel that is in play. For the moment a bearish bounce at the resistance trend line (red) near 1.14 and a break below the support (blue) line of the smaller channel seems the mostly scenarion. This could indicate a bearish retracement back to the inverted head and shoulders support level (purple box) at around 1.1250, which in turn could be a bouncing spot for a bullish reversal.
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.
Good trading, Chris Svorcik