EURUSD is trading around 1.1890-1.19 after getting rejected at the 38% Fibonacci retracement. EURUSD has support at 1.1850 and resistance at recent highs of 1.1975.

If EURUSD bulls manage to recapture the 1.1975 level, then I would expect price to move higher towards the 61.8% Fibonacci retracement and the 1.2030 level. Support is at 1.1850 and a break below it will increase the chances of activating the bearish Head and shoulders pattern we talked about before.

Red line -neck line support

For the above bearish pattern to get activated, price must break below the neckline support at 1.1750. For this pattern to get cancelled bulls must break above the right hand shoulder high. This would be a bullish signal and would give us a target above 1.26.