05.08.201918:44 Forex Analysis & Reviews: EURUSD challenges short-term channel resistance

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EURUSD is challenging the upper boundary of the short-term bearish channel. Recapturing 1.12-1.1210 could lead to a bigger bounce towards 1.13.

Black line - upper wedge boundary

Red line - lower wedge boundary

Blue lines -bearish channel

EURUSD is in bearish trend as price is still inside the blue bearish channel. The longer-term trend remains bearish as price is still inside the long-term downward sloping wedge pattern. Price is now challenging resistance at 1.12. A break above this resistance could push price towards the upper wedge boundary near 1.13. As we said in previous posts the bullish RSI divergence is an important warning for bears. Each time we reach the lower wedge boundary the chances of a bounce increase as long as the bullish divergence remains.

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