Since July 27th EURUSD has been moving in the channel. Last Thursday the price tested 1.1370 level which were the upper limit of the channel strengthened by resistance. That level caused rebound and currently EURUSD is moving to 1.1240 – 1.1220 area. In mentioned area the supports coincides with lower limit of the bullish channel (blue lines at the chart).
Main scenario for EURUSD is declines continuation to 1.1240 – 1.1220 area. After that the price should rebound with target 1.1420. At this level there is strong resistance from previous months and before it will be broken there should occur consolidation or bigger correction. Alternatively if EURUSD breaks lower limit of the channel, downward movement will be deeper and support at 1.0960 will be tested again.
