EURUSD has been moving north since mid-December last year. Looking on H4 chart, we note that recent growth was within the channel from which we broke down on Tuesday. After few hours of correction, the lower limit of this channel was tested from below (as resistance), where yesterday a strong supply reaction occurred. However, the falls did not last too long and they only reached the nearest technical support level of 1.1690.

Since then, we have seen growth again, as a result of which the market has once again reached the upper limit of lasting for two-week bearish channel where supply response has just occurred. Rejection of this zone could open the way to declines. However, to be able to talk about a potential change in market sentiment, we would have to overcome the above 1.1690 support first.

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