EURUSD as expected from our previous analysis has fallen below 1.21. We warned traders that price action showed that EURUSD was vulnerable to a pull back. Price broke below short-term support at 1.2080 and is testing key Fibonacci support.
Black lines - Fibonacci levels
EURUSD has surpassed our short-term pull back target of 1.2050 and has reached the 61.8% Fibonacci level at 1.2036. Short-term trend remains vulnerable to a move towards the February 5th lows at 1.1950. Bulls need to defend the 1.2030 support level and produce a bounce higher. Inability to react will be a sign of weakness. Bulls need to create a higher low and recapture control of the trend. A move above 1.21 will be the first step for regaining control.
