The EUR/USD is again testing the resistance zone (red lines), which is a key decision spot for a bullish breakout or a bearish bounce. A break above the top of wave X (blue) invalidates the currently expected bearish ABC zigzag pattern (green), whereas a break below the support trend line (blue) confirms it. A bullish break could aim for 1.18 and 1.20, whereas a bearish breakout aims for the Fibonacci levels on the chart.
The EUR/USD could be developing a wave B (green) of a larger ABC zigzag in wave Y (blue). The price is now right at the 78.6% Fibonacci level, which is a bounce or break spot.
