EURUSD is making new higher highs. Price is trading around 1.0711 and has formed a short-term bullish channel. The bullish setup we noted in previous posts, has so far played out as expected and price is reaching our targets.
Blue lines- medium-term bearish channel
Red lines -Fibonacci extensions
Medium-term trend remains bearish as price is still inside the blue downward sloping channel. In the short-term we warned traders that a bounce higher was justified and we also noted that a push towards the upper channel boundaries was very probable. Price has formed a bullish green channel and is making higher highs and higher lows. The RSI has not provided a bearish divergence but has already reached overbought levels in the 4hour chart. Next upside target is the 161.8% Fibonacci extension target at 1.08.
