the EUR/USD is in a key decision zone where price will either confirm or invalidate the bullish reversal (purple 123). A bearish breakout however could indicate a downtrend continuation via the bearish waves 123 (brown).
The EUR/USD is testing the Fibonacci levels of wave 2 vs 1 which is a key decision zone for bullish bounce or bearish break. A bullish bounce could confirm a larger reversal if price is able to break above the resistance trend line (red). A bearish break below the 100% Fib levels could indicate that the recent bullish price action was just a pullback (brown wave 2).
The EUR/USD could be building a bearish ABC zigzag pattern (purple). The large bearish decline could be wave A (purple) with the current pullback being a potential wave B (purple).