FX.co ★ EURUSD in short-term consolidation phase, before break out.

Black lines- Fibonacci retracements

Red lines- medium-term bearish channel

Red rectangle- consolidation phase

Blue rectangle- short-term bullish target

EURUSD still not making any progress over the last 4 trading sessions. Price is trading around 1.02 between the 38% and 50% Fibonacci retracement levels of the last decline from 1.0615. Short-term momentum remains bullish after the strong upward move from 0.9953 to 1.0278. A break out of the red rectangle could push price towards the next major Fibonacci retracement around 1.0360. Support is at 1.0150. Failure to hold above this level would be a bearish sign and will increase chances of seeing EURUSD below parity again. EURUSD remains inside the medium-term bearish channel and a bounce towards the upper channel boundary is justified. Bears need to be cautious.