Eurodollar has pulled back after a sharp rally. It will probably resume its move higher and re-test the upper channel line at 1.2615. The bigger picture, however, indicates the formation of what is probably a fulcrum pattern on the 4-hour chart and this is a bearish reversal sign. A break below the bottom of the pattern at 1.2465 would be strong confirmation of more downside with the lower channel line at 1.2400 providing an initial target.
Written by Forex4you