FX.co ★ EURUSD at major support

EURUSD remains inside the medium-tern bearish channel. Price bounced from the short-term support at 1.13 towards 1.1370 where we find the upper channel boundary. Price got rejected and is now very close to breaking below support at 1.13 and providing us with another bearish signal.

Black lines- bearish channel

EURUSD is challenging the green support trend line. The chances of breaking it are high and we should expect EURUSD to continue lower over the coming weeks. The spike above the bearish channel seems to be only a short-lived counter trend bounce to produce a fake break out. Remaining inside the channel is a bearish sign. Failure to hold above the green support trend line is confirmation that the bounce was a trap.