Dollar expected to strengthen at the start of the week

Last week EURUSD ended on Friday after profit taking by bulls and some Dollar buying as price pulled back from 1.19 to 1.18. After the break out at 1.14 EURUSD has risen more than 400 pips. There are signs of a coming Dollar bounce EURUSD pull back.


Yellow rectangle - consolidation range -now support

EURUSD is expected to pull back. Our first pull back target is at the 38% Fibonacci retracement at 1.1620. A sign, that will increase the chances of reaching 1.1620, is if price breaks below 1.17-1.1740 short-term support area. Medium-term trend remains bullish as long as price is above the consolidation area. This gives us hopes of a longer-term upward move above 1.2510.

The material has been provided by InstaForex Company -