The EUR/USD is testing the key support level at 1.13, which is a bounce or break decision zone. A bullish reversal could see price move up towards 1.16-1.17 whereas a bearish break will challenge the next support at 1.1250.
The EUR/USD bullish breakout above the resistance trend lines could start a move up towards the Fibonacci levels of wave Y vs W. A bearish break could start a downtrend but only if price manages to avoid a false breakout. Another key support zone is the 1.1250 round level.
The EUR/USD could be completing a wave 5 (green) of a larger wave C (blue) if price makes a bullish reversal above 1.13. A break below 1.13 invalidates the bullish ABC (blue) zigzag pattern but a different bullish correction pattern could be valid if price bounces at 1.1250. Key aspect is the pattern that takes places if price breaks below 1.13 because a bear flag pattern could indicate more downside but a close and reverse indicates a bullish reversal.
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