EURUSD is trading around 1.1360. Short-term trend remains neutral as price continues trading sideways inside a narrowing trading range. In the medium-term, price remains inside the downward sloping channel since the high of 1.2265 back in May.
Blue lines- narrowing trading range
After the bottom back in November around 1.1186, EURUSD bounced towards 1.14 as expected at that time, but has made no real progress since then. Price is moving up and down within the trading range with bulls unable to break convincingly above 1.14. At the same time price is still inside the medium-term bearish channel and as long as this is the case, I believe that the downward move that started at 1.2265 is not yet complete. A new low below 1.12 is more likely than a major reversal from these levels. A weekly close above 1.1380 would be an important step towards the upside reversal. Until then, bears remain in control of the medium-term trend.
