Red lines- bearish channel (broken)
Green rectangles- higher lows
Blue rectangles- higher highs
Black line- support trend line
EURUSD is trading around 1.0605. So far price continues to respect the black upward sloping support trend line and the recent higher lows. In the near term price has more upside potential than downside potential. EURUSD recently broke out of the bearish channel it was in and I expect at least a short-term bounce from current levels. As long as price continues making higher highs and higher lows bulls have the upper hand. Short-term support by the black trend line is found at 1.0526. Bulls do not want to see price break below this level. The RSI is positively sloped and in the middle range. This implies that more upside should be expected in the near term.
