On Friday we saw EURUSD bounce strongly out of the bearish short-term channel we noted in our last analysis on Thursday. Price has bounced and touched 2 of our bounce targets so far. Price made a high at 1.0875 where we find the 38% Fibonacci retracement level.
Blue lines - Fibonacci retracement levels
EURUSD has bounced towards the 38% Fibonacci retracement but could not overcome this resistance level. If bulls manage to recapture 1.0870 we should then expect price to move towards the next two Fibonacci retracement levels at 1.0894 and 1.0922. The latter is the most probable target if price breaks again above the 38% level. Support is found at 1.0814 and next at 1.0767.
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