EURUSD made another attempt at the start of this week to break above the short-term resistance trend line found at 1.10. Price got rejected once again, confirming the importance of the short-term resistance trend line.
Blue line -major support trend line
Black line -short-term resistance
EURUSD continues to slide below the black resistance trend line and inside the medium-term bearish channel. EURUSD as we mentioned in previous posts remains in a bearish trend, but we believe that the downside potential is limited. We believe there are more chances of a strong bounce towards the upper channel boundary around 1.12-1.1250 than a decline below 1.08. Support remains key at 1.09.
