EURUSD is trading below 1.18. In order for our bullish scenario to come true price should have already bounced above 1.1850. The fact that price is so weak and is pushing below 1.18 is a bearish sign. Given current price action we believe that a break of the bullish channel is imminent.
Pink line - short-term support
Green rectangle- target if channel holds
EURUSD is now challenging 1.1750 support area for the fourth time. The chances are in favor of breaking this support level and moving lower towards 1.17-1.16. Price has not yet broken support but we feel the chances are in favor of this outcome. I will be neutral if the Daily close is below 1.1750 and I would be prepared to look for a bottom around 1.16.