EUR/USD formed a bullish reversal hammer yesterday in the 4hour chart and bounced off the short-term Fibonacci support around 1.15. The pull back we were expecting has occurred and from 1.15 we can see another leg higher. Short-term trend remains bearish as long as price is below 1.1610.
EURUSD retraced more than 38% of the rise from 1.13 and nearly reached the 50% retracement. Price is inside a bearish channel. Breaking above this channel will open the way for a challenge of recent highs at 1.17. The 1.17-1.1730 area is the most important level to watch. As long as we do not break this level we are in danger of falling to new lows towards 1.12-1.11. Breaking above this level will open the way for a move towards 1.19-1.20.
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