FX.co ★ EURUSD could provide a new sell signal if price breaks 1.1538.

EURUSD bounced yesterday above 1.16 only to reverse today and make new lower lows. Short-term trend remains bearish as price is still inside the bearish channel. So far price holds above the horizontal support of 1.1538.

Red line- horizontal support

As shown in the 4 hour chart above, price is challenging the horizontal support around 1.1538. Breaking below it will open the way for a move towards 1.14. That is why it is crucial to see how price reacts over the coming days. Resistance is found at 1.17 and we remain bearish as long as price is below this level.