The EUR/USD broke below the 1.1750 support and trend line (dotted blue) and continued with the downtrend. Price however made a strong bullish bounce after hitting the next target at 1.17 which has taken price back to the top of the resistance channel.
The channel could be a key factor because a bearish bounce could see a continuation towards the Fibonacci targets of wave 5 (blue) whereas a bullish break could indicate a larger bullish reversal. The first bullish reversal target could be aimed at around 1.19-1.1925, which could be part of a larger wave 4 (pink) correction.
The EUR/USD downtrend could have completed the wave 5 of wave 3 (pink) at 1.17 but price will need to break above the downtrend channel to confirm that reversal potential. A break above the resistance (red) could see a bullish breakout take price up to the Fibs of wave 4 whereas a break below the support (blue) could see price test the Fib target of wave 3 and wave 5.