EURUSD is under pressure today, falling as low as 1.1319. Bulls wanted to see price back test the broken channel and bounce off the channel boundary, but instead price broke back into the bearish medium-term channel. This price action is far from bullish.
Black lines - bearish channel
Green line- support trend line
In our previous analysis we warned that the entire upward bounce from 1.1186 could very well be over as price had reached our target. With price breaking back inside the bearish channel we look to our next short-term support as shown by the green trend line. This support is now at 1.1285 and bulls do not want to see this trend line broken. If this happens we should expect EURUSD to fall to new lows towards 1.10. Recapturing 1.14 is key for the trend reversal. Until then, we remain pessimistic.