EUR/USD as expected has bounced towards our minimum target of the 38% Fibonacci retracement level around 1.1340. This is important short-term resistance area and if bulls manage to reclaim and stay above 1.1350, we should be heading towards 1.14-1.1420 soon.

Green line - support trend line

Red line - resistance trend line

Blue rectangle -short-term target (achieved)

Black rectangle - next bounce target

EUR/USD has started making higher highs and higher lows in the 4 hour time frame. Price has bounced as expected and reached our first target. Resistance is important around 1.1350 and if bulls are strong enough we could see a move higher towards 1.14. The next Fibonacci resistance level is at the 61.8% retracement at 1.1407. Support is at yesterday's lows at 1.1275. Bulls do not want to see this level broken. If support fails to hold we could see a move towards 1,12 or lower.