FX.co ★ Bounce is coming in EURUSD

EURUSD has stopped its decline at the 78.6% Fibonacci retracement of the rise from 1.1026 to 1.1249. At least for the short-term we expect a bounce from current levels at 1.11 to see a bounce towards 1.12.

We also watch closely the RSI price as it is still inside the bearish channel. Breaking above the channel will increase the chances of a bounce in EURUSD towards 1.12. The RSI is turning upwards from oversold levels. First bounce target is at 1.12. If we break above the recent high at 1.1250, we should at least expect EURUSD to move towards 1.1290 if not higher. Medium and long-term trend remain bearish.