FX.co ★ EURUSD retracing the upward move from 1.16

The bullish wave from 1.16 ended at today's high at 1.1920. Price has reversed trend and has already reached the 38% Fibonacci retracement. Bulls need to hold above 1.1720 and the 61.8% retracement otherwise bulls will be in danger of losing 1.16.

EURUSD is in pull back phase now. Price has reached the 38% retracement in just one day. This kind of price action increases the chances that the pull back will be steep and could very easily reach the key fibonacci retracement level of 61.8%. Breaking below the 61.8% will be a strong bearish sign. Bulls need to defend this level. Bulls need to be patient and wait for price to get closer to the 61.8% level in order to go long again, hoping for a higher low. Bears on the other hand have more work to do. They will need to push price below 1.16 in order to hope for a bigger decline in EURUSD, otherwise 1.20-1.21 could be a minimum year end target.