The EUR/USD currency pair continued higher within the bullish trend channel yesterday, but failed to break above the channel resistance (red). The price is now challenging again the support zone (green), which is a key decision zone for a bounce or break. A bounce could see the price move up to the Fibonacci targets, whereas, a bearish break below the support (green/blue) could see a larger correction take place.
The EUR/USD currency pair could have completed an ABC (orange) correction within wave 4 (green) if the price manages to stay above the 50-61.8% Fibonacci support zone. A break above the resistance trend line (orange) could spark a wave 5 (green) breakout, but a break below the 61.8% Fib makes this scenario less likely.
The EUR/USD currency pair seems to be moving up higher as part of a wave B (purple) within a larger ABC (purple) correction in wave B (red).
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