Red lines -medium-term bearish channel
Blue lines- Fibonacci retracement levels
EURUSD is trading around 0.9732. Price made a low at 0.9673, a few pips below the 61.8% Fibonacci retracement, and is now bouncing higher. We have said it many times before, the 61.8% Fibonacci retracement is the most probable retracement level for a trend change. The decline has paused around this Fibonacci level and is showing signs of a reversal. EURUSD is being supported around the 61.8% retracement. The formation of a higher low could be the start of a trend reversal and the beginning of a new upward move that could push price towards the upper channel of the medium-term bearish channel. If bulls start a new sequence of higher highs and higher lows from current levels, then it would justify a push towards 1.02. Failure to hold above the 61.8% retracement would be a sign of weakness.
