FX.co ★ EURUSD respects bullish channel despite sharp pull back

EURUSD starts the week in negative territory relative to the close on Friday. However price was much lower earlier today as price fell towards 1.2129. Price is now back above 1.22 and this short lived pull back could be a bullish sign, showing bulls supporting the trend when price weakens.

EURUSD has pulled back towards the lower channel boundary respecting 1.21 support. This pull back was expected as we explained in our analysis posted back on December 17th. In order for price to continue higher we needed a pull back. Today's low is important support. For price to continue higher towards 1.24 we need to respect 1.2129. Failure to hold above today's low we should be prepared for a move towards 1.2050 at least.