In our previous analysis we noted that EURUSD is bouncing as expected after reaching important Fibonacci targets. Price is still inside a bearish short-term channel and our minimum bounce target was at the 1.1940 level where we find the 38% Fibonacci retracement of the latest downward move.
Black lines -Fibonacci retracements
EURUSD is bouncing. Price remains inside the bearish channel and is heading towards our Fibonacci target. Next resistance is at 1.20. As long as price is below 1.20 we see these bounces as selling opportunities for a move even lower. If price breaks and stays above 1.20 we should start thinking that a major low could be in place. Our primary scenario for now remains bearish and we still expect one more new lower low below 1.1835.
