FX.co ★ Channel break out and bearish reversal for EURUSD.

EURUSD has broken out of the upward sloping channel it was in for the last few sessions. Price remains inside the medium-term bearish channel and today's reversal could be the start of a new downward move.

Green lines- bullish short-term channel (broken)

EURUSD has exited the bullish short-term channel. The upward move from the 2022 lows is most probably over. Will EURUSD turn lower for a higher low or will it start a new downward move to new 2022 lows? It is too early to tell. However as long as price is still inside the medium-term bearish channel, we can not be optimistic for the future.

Green lines- bullish short-term channel (broken)

Channel resistance is at 1.0935 and falling. Will bulls have the power to push price closer to the upper channel boundary for a big test? The short-term chart has showed us that a pull back is imminent. If bulls manage to hold EURUSD above 1.06, we could then see another attempt towards the upper channel boundary. Current market conditions suggest that selling pressures should be expected for the short-term.