FX.co ★ Short-term technical analysis on EURUSD.

EURUSD is trading around 1.12. In our previous post on Friday, we noted that market conditions on Friday justified a bounce towards the 1.12 level. Price remains inside the medium-term bearish channel and inside a new shor-term bearish channel.

Black lines - medium-term bearish channel

Blue lines- short-term bearish channel

EURUSD is bouncing higher and current price structure justifies a move towards the upper channel boundary at 1.1225. Short-term trend remains bearish as price continues making lower lows and lower highs. Bulls need to push price above 1.1325 at least in order to reclaim control of the trend. The RSI has not provided any reversal signal yet. EURUSD is expected to test resistance area and get rejected afterwards. This is our most likely scenario despite the strong start of the week for EUR bulls.