The EUR/USD is challenging the support trend line (blue) and 78.6% Fibonacci level of wave B vs A, which is a key breakout or bounce decision zone. A bearish break below the bottom invalidates the potential ABC (purple) pattern and indicates a new wave count, which will most likely indicate a bearish continuation. A bullish bounce could still confirm the current wave structure.
The EUR/USD seems to have completed 5 bullish waves (blue) as part of a wave A (purple) but the bearish momentum is a lot stronger than expected for a wave B (purple). The ABC zigzag pattern is therefore very vulnerable for a bearish breakout which would also invalidate the current wave pattern.
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