EUR/USD despite the initial rejection at the 38% Fibonacci retracement, made a higher low and is now making a higher high. Medium- and longer-term trend remain bearish as price remains inside a bearish channel and below 1.15.
Blue dots - medium strength support
Dark blue dots - maximum strength support
The anticipated bounce from 1.1250 has come according to our plan. Now we see that the more probable scenario is for EUR/USD to top around the 61.8% Fibonacci retracement at 1.1390 area and reverse for new lows. As long as we trade below 1.15 we remain medium-term bearish looking for a move below 1.10. Short-term support is at 1.1260 and resistance at 1.1390.
The material has been provided by InstaForex Company - www.instaforex.com