The EUR/USD has made a strong bullish bounce at the support zone (blue box) and has also broken above the resistance trend line (dotted red). The bullish momentum is indicating a potential wave A (blue) of a larger ABC pattern.
The EUR/USD could complete the wave A (blue) at the resistance trend line (orange) and make a bearish bounce for a wave B. Price is then expected to bounce back up again at 1.13-1.1325 support for a wave C which aims for the Fibonacci levels of wave Y vs W.
The EUR/USD has either completed a wave 3 (green) or a wave 5, which means that price could make a bearish ABC (red) correction soon. A bullish break indicates that price is still in an extended wave 5 (green) whereas a bearish break could start the wave C (red).