FX.co ★ EURUSD continues its bounce higher.

EURUSD is trading around 1.1250-1.1270. Price has broken out of the short-term bearish channel we mentioned in previous posts. Price remains inside the medium-term downward sloping bearish channel.

Red lines - bearish channel

Black lines -Fibonacci retracements

EURUSD has so far retraced 38% of the entire decline from its latest high at 1.1483. This is considered a justified counter trend bounce. Price remains inside the bearish channel. Trend change confirmation we will have only if price breaks above 1.1485. Until then we consider the bounce as a relief bounce before resuming the down trend. Next resistance level is at 1.13 and at 1.1344. Our expectations are to see price get rejected around these two resistance levels.