EURUSD made a sharp pull back towards support and previous resistance area at 1.1250-1.1230. Price respected this support and has bounced back towards the weekly highs. Price being support and well bid below 1.1250 is a bullish sign. EURUSD continues to be in a bullish short-term trend as long as price holds above 1.12.
Red lines - medium-term bearish channel
Green rectangle -major support area
Black line - short-term resistance (broken)
EURUSD remains in a short-term bullish trend. Medium-term trend remains bearish. EURUSD is expected to challenge the upper boundary of the bearish channel around 1.13. Bulls need to break out and above this bearish medium-term channel in order to change medium-term trend to bullish. Bulls need to respect 1.1250 and not break below it again. Price is making higher highs and higher lows so far so bulls remain in control of the short-term trend. Bears will need to defend the 1.13-1.14 medium-term resistance area and eventually break below 1.12 for a move towards 1.11-1.10.The material has been provided by InstaForex Company - www.instaforex.com