EURUSD is challenging important short-term support. Price has reached our first short-term bounce target area of 1.1310-1.1330. This is important resistance area. EURUSD has made an important low at 1.12 area and as long as price is above this level bulls could hope for something bigger for the upside.
Red lines – bearish channel
Black line – major trend line resistance
Green rectangle – support area
EURUSD is above 1.13. Short-term trend remains bullish. Medium-term trend remains bearish as long as price is below the black downward sloping trend line. First important resistance is now at 1.1310-1.1330 area. Breaking above and out of the bearish channel would be an important win for bulls. But for medium-term trend to change to bullish price will need to move and stay above 1.14. So far price is making higher highs and higher lows. Next important high is at 1.1450 that bulls need to break. Breaking above it will confirm the medium-term trend change to bullish.The RSI has been diverging on a daily basis since last August. For this divergence sign to be confirmed as a reversal signal, bulls will need to break above 1.1450.
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