EURUSD continues to trade under pressure. Price is again below 1.12. EURUSD is trading below the major pivot point of 61.8% Fibonacci retracement of the entire rise from 1.0635 to 1.2350. The more price remains below the 61.8% retracement at 1.1289, the more likely it is for price to move lower towards the next Fibonacci retracement.
Black lines- Fibonacci retracements
EURUSD has so far provided two bullish divergence signals. As we mentioned before, these signals are only warnings and not reversal signs. EURUSD needs to break at least above 1.14 in order to confirm the start of a reversal. With price under pressure below 1.13, bears remain in control of the trend. The 61.8% retracement level is a very probable reversal level, however as long as we trade below it, I can see price approaching 1.10 and the 78.6% retracement.
