The EUR/USD pair has corrected back and has almost reached the 50% Fibonacci retrace of the preceding move at 1.2550. It has pulled back to a cluster of support from moving averages and pivots at current levels signalling the possibility of a bounce and move up to probably re-touching the 1.2690 highs. A continuation lower, on the other hand could target the 1.2400 support level.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst