FX.co ★ EURUSD slows down pace at the end of the week

A bullish week comes at its end with price closing near the weekly highs. Trend remains bullish but next week could start with a downward move. We expect to see a pull back towards 1.21 as we explained in our last analysis and today's price action seems to confirm this view.

Blue lines - bullish channel

Green line - expected path

Red lines - Fibonacci extensions

EURUSD is turning lower from the 1.2177 highs. Now trading at 1.2127, price has some more room to fall in order to get close to the lower channel boundary. Our expectations for the start of next week is to see price below 1.21. before turning higher again. Important support is found at 1.20. There we find the 38% Fibonacci retracement.

Ideal scenario for bulls would be a pull back towards 1.20 and the 38% Fibonacci level before the up trend resumes towards 1.2350-1.24. The upside target will depend on the depth of the pull back we expect to see next week.