the EUR/USD is moving sideways after recently confirming a higher high. The corrective price action is expected to develop as a bearish ABC (purple) zigzag pattern within a wave B (pink).
The EUR/USD bullish swing has most likely completed a strong, impulsive wave A (pink) and price is expected to show another bullish swing after completing a bearish ABC retracement (purple). The Fibonacci levels of wave B vs A are therefore expected to act as potential support level for a bullish reversal.
The EUR/USD seems to have completed an ABCDE (blue) triangle chart pattern within wave B (purple). For the moment, a bearish breakout seems more likely and a push below the support zone (blue lines) could confirm the bearish push lower. A bullish breakout however could either indicate a deeper wave B (purple) or a new uptrend.
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Good trading, Chris Svorcik