EURUSD is challenging today the short-term bullish channel it is in since 1.17. Price is very close to breaking out of the channel and if price closes the 4 hour candlestick below 1.20 we can have our first sign of weakness since the low of 1.17.

Red line -major resistance

Blue lines -Fibonacci retracement levels

EURUSD will pull back at least towards the 38% Fibonacci retracement level at 1.1935 if we see 1.20 break. Next important support is at 1.1845 and the 61.8% Fibonacci retracement level. If price goes all the way to 1.1850 then our thoughts of a head and shoulder pattern that were explained in a previous post, will have come true. It is still too early to talk about the right hand shoulder but it is a scenario worth keeping in mind in case sellers push price lower.