The Euro/Dollar has reached its highest price in 2011 last week at 1.3754 and finally falling to close the week at 1.3610 on Friday. There is a strong potential reversal point around 1.3750 on this pair for a bearish retracement.
The price level located around 1.3750 on the EUR/USD was often solicited as a support in 2010, as you can see on the daily chart. This same level serves us now as a resistance and become an interesting turning point to enter in a bearish retracement.
The bearish retracement is invalidated by a failure of breaking 1.3551 (Fibonacci Level 23.6) or a new high. A break of 1.38 would lead us in a completely different scenario.
A break of 1.3551 would confirm the bearish retracement scenario for the EUR/USD.
Retracement Levels
Fib Level 0 (January High) : 1.3754
Fib Level 23.6 : 1.3551
Fib Level 38.2 : 1.3425
Fib Level 61.8 : 1.3210