Blue lines- Fibonacci retracements

EURUSD is trading around 1.0780. Price has so far retraced 50% of the last upward move from 1.0517. Will EURUSD form a higher low? Support is at recent low of 1.0742 where we also find the 50% Fibonacci retracement level. A break below this area will open the way for a move towards the next support area at the 61.8% retracement level. It is too early to tell if EURUSD is in a corrective sideways path or starting a new up trend. For now traders need to remain cautious. There is a strong support base around 1.05-1.0550 that has been tested so far three times and held. We can safely say that as long as bulls respect the 1.05 area, we should expect another move higher.