Blue lines- Fibonacci retracements
Red line- lower channel boundary
EURUSD is trading at 0.9780. Price has so far retraced nearly 50% of the decline from 1.0198. There is still upside potential as price in the near term is making higher highs and higher lows. Next upside target is at 0.9950 (or 61.8% Fibonacci retracement). Short-term support is found at 0.9735-0.9725 and as long as price is above this level, we expect EURUSD to continue higher towards 0.9950. A break below 0.9725-0.9735 will increase chances of a new downward move towards 0.95. The upper channel boundary of the medium-term bearish channel is at 1.02. This could very well be a target if bulls manage to push above 0.9950.
