Red lines- bearish channel
Blue lines- Short-term support trend lines
EURUSD is trading around 1.0530. Price remains inside the red downward sloping channel. Price got rejected at the upper channel boundary. Bulls could not break the resistance at 1.0635. The rejection lead to a decline that first pushed price below the first blue support trend line at 1.06 and then below the second support trend line at 1.0547. Recent price action confirms the importance of the resistance by the upper channel boundary around 1.0630. Secondly recent price action suggests that EURUSD remains vulnerable to new lows as long as it trades inside the bearish channel.
