The EUR/USD bullish breakout is building an uptrend channel. Although the bullish breakout could indicate the end of wave 3 (green), price is still expected to continue with the downtrend if price respects and reverses at Fibonacci resistance levels of wave 4 (green). A retracement towards the 38.2% or 50% Fibonacci level is considered a normal retracement for such a wave 4 whereas a break above the 61.8% Fib would make such a wave 4 (green) pattern less likely.
The EUR/USD seems to be building a larger WXY (orange) correction and price is now probably in the 3rd leg which is the wave Y (orange). A bullish continuation could be expected as long as price stays above the support trend line (green) and Fibonacci retracement levels of wave B (orange).
