The EUR/USD broke above the resistance trend line (dotted red line) but was unable to show much momentum. Is price showing false breakout or is it preparing for a continuation?
The EUR/USD needs to break above the previous top (orange box) before an uptrend continuation seems likely and probable. The breakout targets are the Fibonacci retracement levels of wave B vs A which are at 1.1775 and 1.20. A bearish breakout below the support trend line (blue) makes it likely that the wave B will see a deeper retracement.
The EUR/USD seems to have completed an ABC (green) correction within wave 2 (blue) but price needs to the bull flag pattern before a wave 3 (blue) become more probable.