EURUSD has reached our first pull back target at the 38% Fibonacci retracement support. Price is bouncing and could continue higher, but eventually I believe it is more probable to see another leg lower next week towards 1.1790-1.1760.
Red line- expected path
Green lines - Fibonacci retracement levels
EURUSD is in a bearish short-term trend. Price has broken out of the bullish channel and is making lower lows and lower highs. So far the 38% Fibonacci retracement is being respected. Price is expected to continue lower towards at least the 50% Fibonacci retracement, but a bounce off the 38% level is justified as we explained in our last post. I continue to believe any upside bounce is considered as a selling opportunity.
