EURUSD pullback before 1.40

EURUSD will target 1.4000/1.5000 in the medium-term, though a pullback before then is likely, says Tony Sycamore, Director of Australia-based TECHFX TRADERS.

Sycamore expects 1.2800 to cap the current rally and a short-term pullback to occur. He thinks that if EURUSD breaks below 1.2390/70 it may extend towards 1.1713 (the 38.2% Fibonacci retracement level) or as far as 1.1453 (the 50% Fibonacci retracement level).

After the pullback, based on Elliott Wave analysis, he thinks it will begin its next leg higher towards 1.4000/1.5000 (see Chart).

See Chart.