The EUR/USD bullish rally has disappeared and price is now retesting the 1.1750 support zone again, which is a critical and key decision zone for a downtrend continuation or larger bullish reversal.
A break below 1.17 could see price continue with the established downtrend whereas a break above the resistance trend line (red) could indicate the start of a larger bullish retracement within wave 4 (pink) or wave B (if wave A light purple has been completed). Price needs to break above 1.20 before wave A is considered complete.
The EUR/USD is probably building multiple ABC corrections (blue) within a larger WXY (purple) correction of wave 4 or B. But a break above the resistance trend line (red) is needed before that wave pattern becomes more likely. The Fibonacci levels of wave X could also act as potential support but a break below the 138.2% Fib invalidates this wave X (purple).
