EURUSD gets rejected at short-term resistance

In our last analysis we noted that bulls need to break above 1.1880 resistance in order to continue towards 1.20 and higher. Yesterday's daily candle was a bullish one as it has a long lower tail and price closed in positive territory near its daily highs.

Red line - resistance

Blue lines -bullish channel

Pink line - support

EURUSD is back inside the bullish channel but with the rejection at 1.1880 we might see price pull back towards the key support at 1.18-1.1765 area. Recent price action during the last week has confirmed the importance of the support area at 1.1760 and the importance of the resistance at 1.1880-1.19.

In the 4 hour chart we clearly see the lower high and the rejection at the resistance area we noted yesterday. Traders could take advantage of the price action and go short with stops near today's highs with expectations of reaching again the pink support trend line and why not breaking it. On the other hand bulls need to be cautious. They want price to break above today's high.