The EUR/USD made again a bearish bounce at the resistance zone around 1.1750, which is indicating that a larger ABC (blue) pattern could have been completed. What’s next?
The EUR/USD is building a large and complex correction, which is simple to see when analysing the 4 hour chart as price has been in this tight range for a full 2 months. The ABC (blue) could have completed a wave W (purple) and price could be building a retracement back to the Fibonacci retracement levels of wave X (purple).
The alternative is that price is still in a wave 4 (green) and the recent high completed a wave 3 rather than a wave 5 (green). But in that case price should not retrace into the price territory of wave 1, which is indicated by a purple line. For the moment though, it seems more likely that the bullish price action completed 5 waves (green) within wave C (blue) of wave W (purple) and it could now be retracing as part of wave X (as shown on 4 hour chart).