The strong EUR/USD rebound could indicate the end of wave B (red) and a larger bullish reversal despite the larger downtrend channel that is in play. For the moment a bearish bounce at the resistance trend line (red) near 1.14 and a break below the support (blue) line of the smaller channel seems the mostly scenarion. This could indicate a bearish retracement back to the inverted head and shoulders support level (purple box) at around 1.1250, which in turn could be a bouncing spot for a bullish reversal.
The EUR/USD could be building a final wave 4 – 5 (blue) pattern within the bullish push up. A bearish break below the 61.8% Fibonacci , however, could indicate the start of larger bearish retracement. A bullish wave 5 could aim for 1.14 but a break above this level could indicate an extension towards 1.15.
