FX.co ★ EURUSD back tests broken channel

Yesterday EURUSD broke out and below the bullish channel that started around 1.08. Price is bouncing today and hitting the broken channel below. This is important day to see if we get a rejection or a fake break down.

Black line- resistance trend line

EURUSD is back testing the broken channel. A rejection at the lower channel boundary combined with a break below 1.1275 would be a bearish sign and would increase dramatically the chances for a move towards 1.12 and lower. Resistance is at 1.1330. Bulls need to get back inside the channel. Bears want to stay out of the channel and eventually break below the recent low at 1.1240. This will increase the selling pressures and push price towards our first pull back target of 1.1150.