The EUR/USD is showing bullish momentum but the overall trend remains down. Price is now approaching a key resistance spot at 1.1750-1.1840, which is critical decision zone.
The EUR/USD has 2 main options:price is either expanding the wave 4 (pink) via a sideways corrective pattern or building a bullish ABC (pink) zigzag as part of a wave B (purple).
The EUR/USD broke the previous top for a new higher high. As expected the EUR/USD moved up eventually, despite the bearish trend. The bullish price action however is moving slowly which is hinting at a correction. Price could either be developing a 123 or ABC pattern depending on how price responds to the trend lines. A bullish breakout could see price test the Fibs of wave 3 whereas a bearish breakout could see price test the previous bottom.
