The EUR/USD is showing bullish daily engulfing twins at the support trend line (blue), which could confirm a larger bullish zigzag pattern.
The EUR/USD bullish breakout above the resistance trend line (red) could confirm the bullish breakout and zigzag pattern. The bullish zigzag could be part of a bearish wave B (purple) if price bounces at the Fibonacci retracement levels and return back to the same support zone.
Once the bearish ABC pattern on the weekly chart is finished, it is expected to complete a wave B (red). This wave pattern becomes invalidated once price breaks below the 100% Fibonacci level of wave B vs A. Even a break below the 61.8-78.6% Fib zone could already indicate that a long-term downtrend is more likely.
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