Blue lines- Fibonacci retracements
Red line -lower channel boundary
EURUSD has made a new higher high relative to yesterday and has reached very close to the 50% Fibonacci retracement. Price is turning lower and it is very important for the short-term trend to see if bulls will manage to hold above 0.9635. There is potential to see EURUSD reach the 61.8% Fibonacci level, but it is not necessary. EURUSD has so far made a lower high at 0.9854 today's highs. The entire upward bounce could very well be over and we could be starting a new downward move to new lows. Breaking below 0.9635 will increase the chances of this bearish scenario. If bulls on the other hand manage to break above 0.9950, we could be at the early stages of a bigger move higher towards 1.02 at least. For now we remain bearish and so is our primary scenario.
