FX.co ★ EURUSD breaks out of bearish short-term channel.

Red line- bullish RSI divergence

Blue lines - medium-term bearish channl

Green lines- short-term bullish

EURUSD ended the week off its weekly highs. In the short-term price has broken above the downward sloping channel coming from 1.0615 and is bouncing off the weekly downward sloping channel as well. As we mentioned in previous posts, the bullish RSI divergence combined with a bounce off the lower boundary of the bearish channel were signs of a coming bullish reversal. Price is approaching the 23.6% Fibonacci retracement. If bulls manage to break above the first Fibonacci level, the second at 1.0205 should be reached soon after.