Blue lines- bullish channel
EURUSD is trading around 1.0682. The decline from 1.1276 is complete. Price has broken out of the bearish channel it was and is now bouncing higher. However the overlapping structure of the rise from the recent lows, implies that this upward move is most probably corrective in nature and not impulsive. This means that we should expect a lower high to be formed and the downtrend to resume. Technically in the near term price is making higher highs and higher lows inside the blue upward sloping channel. As long as this is the case, bulls have the upper hand. There is still room to the upside, but a break below 1.0595 would be a bearish signal and the first sign of a possible reversal.
