EURUSD is trading at 1.19 after a low today at 1.1835. Price has potential for a bounce higher towards 1.1940-1.1950 where we find the 38% Fibonacci retracement of the latest downward move and the upper channel boundary.
Black lines -Fibonacci retracement
In our last analysis we noted that it was justified for EURUSD to make a bounce higher. Although trend remains bearish, price has reached important Fibonacci targets and with the RSI in oversold levels, the chances of a bounce had increased. That is why we warned yesterday of a coming bounce. Resistance is now found at the 38% Fibonacci retracement and we should at least a expect a move towards that level. If price breaks above 1.2050 then we should start thinking that the entire decline from 1.2242 is complete.
