FX.co ★ EURUSD challenges important Fibonacci retracement

EURUSD is trading just above 1.2060. Price is now challenging the 61.8% Fibonacci retracement of the rise from 1.1990 to 1.2180. If EURUSD continues to break below the Fibonacci support at the 61.8% level, then we should expect more downside and maybe 1.1990 will be challenged.

EURUSD has reversed lower after making a new higher high at 1.2180. As we mentioned in previous analysis, bulls need to be cautious because despite the new higher high in price, the RSI did not follow and this is an important warning of a possible trend reversal. Soon after prices turned lower and we are now challenging important Fibonacci support. Failure to hold above 1.2050-1.2060 would be a bearish sign. It will put 1.1990 in danger and we will most probably break below it.