The EUR/USD chart is showing two wave patterns simultaneously. The green waves indicate a potential bullish 5 wave pattern and a bullish breakout could confirm (green check) the wave 3 (blue) development. The red waves indicate a counter trend ABC pattern and would invalidate (red x) the main bullish wave outlook. The main targets for upside are 1.1275 and 1.1350 whereas the bears would be aiming for 1.1050, 1.10 and 1.0950.
The EUR/USD is either building an ABC (orange) within wave B (red) or a 5 wave pattern (dark red) within wave 3 (orange). The Fibonacci levels of wave 4 vs 3 are key to determine a bounce or breakout. When a breakout does take place, then Fibonacci levels are the expected targets.
