Red lines- bullish channel
Blue lines- Fibonacci retracements
EURUSD is trading below 1.09. Earlier today price fell as low as 1.0845 between the 38% and 50% Fibonacci retracement of the latest upward movement. Price has exited the bullish channel by breaking the lower channel boundary. This is a sign of weakness. EURUSD sharp decline today has stopped around 1.0845 but there is potential to see a further decline towards the important 61.8% Fibonacci retracement level. A break below 1.0780 would be a second sign of weakness that bulls do not want to see. Currently bulls hope that this pull back just created a higher low in order to resume the up trend.
