The EUR/USD bounced at the support trend line (blue) and previous bottom and has now broken above the resistance trend line (dotted red). A bullish continuation and zigzag pattern are now most likely.
The EUR/USD is expected to make a bullish ABC (blue) zigzag pattern towards the Fibonacci targets where it could complete a potential head and shoulders reversal chart pattern (purple boxes).
The EUR/USD seems to have completed 3 bullish waves and is now testing a potential wave 4 (green) pattern. The Fibonacci retracement levels of wave 4 vs 3 (green) are expected to hold if price is indeed in a wave 4 and eventually a bullish break above the resistance (red) could indicate a bullish breakout and continuation towards the Fib targets.
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