EURUSD challenged the short-term resistance at 1.1250, got rejected and pulled back to form a higher low thus far. Support at 1.12 is still respected and combined with the bullish divergence signs by the RSI we continue to expect a move higher as the most probable scenario.
Red lines - bearish channel
Green rectangle - support area
Blue lines - bullish divergence
So far EURUSD holds above the 1.12-1.1185 support area. Price is showing reversal signs and a possible bounce towards 1.13. Medium-term trend remains bearish as long as price is below 1.14 and inside the red bearish channel. Short-term resistance remains at 1.1250 and if we see a break above it we should then expect EURUSD to move towards 1.13-1.1340. Price action is very similar to the mid-February lows where the RSI did not confirm the new lows and then price reversed trend and rose from 1.1235 to 1.1420.The material has been provided by InstaForex Company - www.instaforex.com