The EUR/USD made a bullish reversal around the 1.13 support zone as indicated in our previous wave analysis. The impulsive price action is now testing the resistance line (orange) of a downtrend channel.
The EUR/USD could bounce at the channel resistance and make a pullback within a wave B (blue). Price would then test the Fibonacci retracement levels of wave B vs A, which in turn could as potential support levels if indeed the bullish ABC zigzag wave pattern takes place.
The EUR/USD is building a rising wedge reversal chart pattern within wave A (blue). A bullish break above the resistance trend line (red) could indicate a continuation of the wave A towards the Fib targets of wave 5. A bearish break below the wedge could see price move lower towards the Fib retracement levels of wave B (blue).