EURUSD is trading around 1.1820. Price has already retraced 50% of the rise from 1.1665 to 1.1909. EURUSD initially reached our target of the 38% retracement and bounced. The shallow bounce was followed by another leg down towards the 50% retracement. Price has bounced again from this Fibonacci support level.
Green lines - Fibonacci retracement levels
Since breaking the black bullish channel, we expected EURUSD to make a pull back and at least form a higher low between the 50% and 61.8% retracement levels. The minimum expectations of the pull back have been fulfilled and we could now see the start of a new upward move that will eventually push price above 1.1910. However it is too soon to talk about such a scenario. First bulls will need to break and stay above the latest high at 1.1851. Once this is done, price must start forming higher highs and higher lows. Support and recent low at 1.1770 must be defended and not broken. Only then we can start talking about a bullish move that will push price above 1.1910 towards 1.20.
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