Red lines- bearish channel
black line- short-term support trend line
EURUSD is trading around 1.0544. Recently EURUSD broke out of the bearish channel it was and it bounced towards our 1.07 target area. Shortly after EURUSD came back under pressure and price declined below the short-term support trend line. The recent price action is not bullish. Price has broken below the black upward sloping support trend line and has also back tested it from below. The major low at 1.0496 is very important support. From this level we started the last leg up towards 1.07. Bulls do not want to see this price level broken.Failure to hold above 1.0496 will open the way for a decline below 1.04.
