In our previous analysis we noted that our next target in EURUSD was around 1.2060 where we find the 261.8% Fibonacci extension of the first leg higher. EURUSD was expected to make a pull back towards 1.18-1.16.
Blue lines - bullish channel
Green rectangle - target
Purple line -expected path
Red lines- Fibonacci extensions
EURUSD made a high yesterday at 1.2010 and is now trading around 1.1834. Our first pull back target is very close. Price remains inside the bullish channel. Can EURUSD move towards 1.2060-1.21 again. As long as price holds above 1.1762 we could see the channel support hold and price bounce off the support area around 1.18-1.1760. If this is the case, then we could see a move inside or above the green rectangle area. If the channel fails to hold, then we expect the second pull back target of 1.16 to be challenged.
