EURUSD has bounced as expected but so far the move higher has been weak and price only managed to reach the first short-term resistance and trend change level. Medium and short-term trend remain bearish.
Red line - major resistance trend line
Blue lines - bullish divergence
Green line - major support trend line
EURUSD as we noted in previous posts has been giving bullish divergence signs making us expect a bounce. Short-term resistance at 1.1250 is being tested. Break above it and short-term trend changes to bullish and we could see a move even higher towards 1.13-1.1340. Medium-term trend remains bearish as long as price is below 1.14 and below the red resistance trend line. Support is at 1.12 and below that we have 1.1140. I continue to expect price to bounce higher specially if we break above 1.1250.The material has been provided by InstaForex Company - www.instaforex.com