EURUSD bulls have managed to respect the 61.8% Fibonacci retracement and have now formed a higher low at 1.2025. This is the most important short-term support level. Bulls need to defend this level otherwise we will see a break below 1.1950.
Blue lines - Fibonacci retracement levels
EURUSD is back above 1.21 challenging recent highs. Price broke above the red resistance trend line, pulled back as a back test and bounced off the 61.8% level. This price pattern is bullish. In order to cancel this bullish pattern price must break the recent low. Bulls have the upper hand. They now need to break above the recent highs resistance at 1.2170 area. By doing this we will have a new upside target at 1.2250. If support and recent low at 1.2025 area fails to hold, then we should expect sharp decline.
