EUR/USD bounced towards 1.1360-1.1380 and got rejected. Price reversed sharply lower below 1.1330. Trend remains bearish as long as price is below 1.1435. We remain bearish looking for a move towards 1.12-1.11.
Yellow rectangle - resistance
Red rectangle - short-term resistance
Green rectangle - support
Blue line - trend line support (broken)
With the trend line support broken we noted that EUR/USD was poised to move lower. Price managed to put a bounce yesterday and recapture 1.14 but sellers were stronger and price did not even close above the red rectangle area which was previously support. Price continues to make lower lows and lower highs. Trend remains bearish in the short-term after the rejection at 1.1450. I remain bearish looking for a move towards 1.12-1.11 at least. Resistance is at 1.1385 and 1.1435. I do not want to see these levels broken to the upside. If this happens we could see another final bounce towards 1.15-1.16 before lower. If we break below 1.1270 the chances for a bigger bounce will diminish dramatically.
