FX.co ★ Technical analysis of EURUSD

EURUSD today reached and surpassed our first target of 1.2130. Price continued higher towards 1.2175 but at the end of the day price is near its lows. Short-term trend remains bullish but there are high chances for a pull back towards channel support around 1.2090.

Blue lines - short-term bullish channel

Green lines -expected price path

EURUSD is making higher highs and higher lows. After breaking out of the trading range and above the 1.19 resistance the path to 1.21 and higher was clear as we explained before. With RSI at overbought levels and price having surpassed the 100% extension of the first upward wave, it is time for a pull back towards channel support. Next target is at 1.2260 where we find the 161.8% of the first upward move. However a pull back towards 1.21-1.2050 is highly probable. Bulls need not be overconfident at current levels.