4 hour
The EUR/USD has made a sharp bearish decline and is now testing the outer limits of a potential wave 4 (purple).
A break below the 61.8% makes a wave 4 unlikely and the wave structure would change where wave 5 (purple) of wave 5 (green) of wave 3 (green) would be completed at the most recent high of 1.2070.
1 hour
The EUR/USD is either building an unusually sharp ABC zigzag (brown) within wave 4 (purple) or price is building a bearish 123 wave pattern (red). The wave 3 (red) becomes likely if price manages to break below the support levels (green). A bullish break above resistance (red) could make a wave 4 pattern still possible. In that case, either a wave 5 has started or price could build a triangle for a larger wave 4.
