FX.co ★ EURUSD pulls back as expected, Now what?

As we expected in our last analysis, EURUSD should start the week on a negative note and push below 1.21 towards the channel support. Price today has made so far a low around 1.2078 and right on top of the lower channel boundary. Price is now bouncing again. Respecting this low, could lead to a new higher high towards 1.22.

EURUSD remains inside the short-term bullish channel and as long as this is the case, we expect price to make new higher highs towards 1.22. If the recent low at 1.2078 is broken and price exits the bullish short-term channel, then we should expect price to continue lower towards 1.2010 area where we find the 38% Fibonacci retracement of the rise from 1.1745.