the EUR/USD made a bearish bounce at the resistance trend line (red), which could confirm the potential wave 4 (green) pattern but this does depend on the price action during the upcoming NFP and unemployment rates in the US on 3 May.
The EUR/USD is looking for a bearish continuation after breaking yesterday’s low or after bouncing at the resistance trend line (red). A bullish break, however, is possible if price is able to break above the resistance (red) line. The main targets of the downtrend are the Fibonacci levels of wave 3 vs 1.
The EUR/USD broke the support trend line (dotted blue) but the break was slow and corrective. A bullish bounce could indicate that price will make a bullish retracement back to the Fibonacci levels of wave 2 vs 1, which are levels that could act as resistance. A bearish breakout confirms the current wave outlook whereas a bullish break above the 100% Fibonacci level invalidates the wave 1-2 (orange) pattern.