EURUSD is trading inside a short-term bullish channel. Medium-term trend remains bearish as long as price is below 1.14-1.450. Bulls must hold above 1.1230 otherwise they will be in danger of seeing price move below 1.12 or even below 1.1170.
Red line – major resistance trend line
Blue lines – bullish channel
Red rectangle – short-term support
EURUSD bulls must hold inside the bullish channel and specially above 1.1235 in order to continue to hope for a move higher. Major resistance is at 1.13 and bulls need to recapture that level. On the other hand the rejection at 1,1330 is a good sign for EURUSD bears and they want to see price break below 1.12 next in order to hope for a bigger decline towards 1.11. A short-term sell signal will be given if price breaks the red rectangle support area with 1.12 as the first target area. Resistance is found at 1.1260. Bulls need to break above this level in order to retest 1.13.
The material has been provided by InstaForex Company – www.instaforex.com