FX.co ★ EURUSD reaches key Fibonacci level and bounces

EURUSD was expected to pull back towards the key Fibonacci levels we have mentioned in our previous analysis. EURUSD has reached the 61.8% Fibonacci retracement level and has bounced off of it.

EURUSD has pulled back as a back test of the broken wedge pattern. Price has so far reached the 61.8% level and is bouncing. As we explained in our last Ichimoku cloud analysis, we had a weak sell signal and the first target was the cloud support at 1.1130. Price surpassed our target and reached 1.1060.

So far the back test is successful and supportive of the bullish continuation of the break out. If price pushes back inside the wedge pattern and stays below, then this would be a very bearish sign.