FX.co ★ Technical analysis on EURUSD

EURUSD has stopped the decline at the 61.8% Fibonacci retracement of the rise from 1.1950 to 1.2169. Price has turned lower as expected and broke below 1.21 reaching the 1.2030 Fibonacci support area. Price is now trading at 1.2064 bouncing off the 61.8% retracement.

Blue line- bearish divergence

Black lines -Fibonacci levels

EURUSD recent price action has confirmed to us the key short-term support around 1.2030. Holding above this level is crucial for the short-term trend in EURUSD. The formation of this higher low is an important sign, but it will be a bullish sign only if bulls manage to break above recent highs at 1.2169. If bulls fail to hold above 1.2030 then the chances of continuing higher diminish. On the other hand if this support breaks then the chances of a move below 1.1950 increase. Bullish stop at 1.2030 while bearish stop at 1.2170. We trade according to these levels.