EURUSD has tried to break above the 1.1230-1.1260 resistance area but thus far price seems unable to break through resistance. Momentum favors the break out but as long as we trade below 1.1260 we continue to trade inside a medium-term bearish channel.
Red lines - bearish medium-term channel
Blue rectangle - important horizontal resistance
Black line - short-term support trend line
EURUSD so far got rejected at the 1.1266 resistance from the previous 2 peaks. Price is challenging the previous highs and the upward boundary of the bearish channel. So far bulls are not strong enough to break resistance. Support is found at 1.1210 shown by the upward sloping black trend line. Breaking below this trend line would be a sign of weakness implying a move towards 1.11 is not out of the question.
