FX.co ★ Bullish scenario for EURUSD

EURUSD has so far retraced 50% of the recent rise from 1.1193 to 1.1285. Short-term trend is bearish as price is making lower lows and lower highs. A reversal of trend should come once the ABC decline completes around 61.8% Fibonacci retracement and price breaks above 1.1275.

Red lines - bearish channel

Blue rectangle - possible reversal area

Green line - expected path

EURUSD is pulling back towards the upper channel boundary and towards the 50-61.8% Fibonacci retracement levels. A reversal to the upside from these levels is highly probable. EURUSD bulls should respect the 61.8% level and break above 1,1275 resistance in order to resume their up trend. Support is at 1.1228. I expect that it is more probable to see an upward reversal.