Violet lines- Fibonacci retracement levels
EURUSD is trading around 1.0760. In our analysis yesterday we noted that a bounce towards 1.0750 was very probable. After the announcement of the US CPI for January EURUSD bounced strongly towards the 38% Fibonacci retracement but price got rejected. Key support remains at yesterday's lows at 1.0656. Support is also found at the current candlestick low of 1.0709 and a break below it will be a sign of weakness. Today's bounce towards the 38% retracement combined with the rejection at 1.08 just confirms the importance of that resistance. A break above it will open the way for a move towards 1.0850-1.09.