EUR/USD technical analysis: Bulls follow two-week-old ascending channel
- EUR/USD pulls back from 61.8% Fibonacci retracement.
- Sellers look for entry below 1.0980 comprising channel’s support.
Despite witnessing a pullback from 61.8% Fibonacci retracement of late-August to September month declines, the EUR/USD pair stays inside a short-term rising channel as it trades near 1.1027 during early Monday.
While horizontal support including early-month highs and Friday’s low, around 1.1000, can please intra-day sellers, pair’s further declines need to slip beneath support-line of the two-week-old rising channel, at 1.0980, in order lure bears targeting 1.0950 and 1.0900 rest-points.
Alternatively, pair’s upside clearance of 61.8% Fibonacci retracement, close to 1.1055, may find it hard to cross channel’s resistance-line at 1.1070 now.
If at all bulls manage to conquer 1.1070, last month’s high near 1.1110 and August 25 top surrounding 1.1165 could become their favorites.
EUR/USD 4-hour chart
Trend: pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
