The EUR/USD could build an inverted head and shoulders reversal chart pattern, which are indicated by the purple boxes. A bullish continuation is expected towards the 23.6% Fibonacci retracement level of wave B vs A (light purple).
The EUR/USD is showing a small consolidation pattern. A bullish break could see price move up towards the 1.15 resistance trend line (red) whereas a bearish break below support (blue) will probably see price move lower and test the Fibonacci retracement levels of wave 2 vs 1 (green). These Fibonacci levels are expected to potential support levels and bullish bounce zones for a move higher. A break below the 100% Fib of wave 2 vs 1 invalidates the wave 1-2 pattern.
