The EUR/USD pair is demonstrating a strong bullish movement which was maintained within the depicted bullish channel. However, on Friday the market witnessed some bearish retracement in reaction to the upper limit of its movement channel around the price level of 1.2580.
This week the EUR/USD pair managed to break down the short term uptrend line depicted on the chart after finding resistance around the price level of 1.2570. However, the pair came back to consolidate above the trendline as depicted on the chart.
The most significant Resistance level is located around 1.2580. This price level was tested last week expressing bearish reaction which pushed the EUR/USD pair strongly to the downside.That's why a low risk SELL entry is suggested at retesting which is taking place now with a tight SL located above 1.2630.
The lower limit of the movement channel and two important Fibonacci levels & SMA 100 are located between 1.2310-1.2360 where price action should be watched for a valid low risk BUY entry with SL located below 1.2230 which corresponds to 78.6% of Fibonacci level.
