FX.co ★ EURUSD challenges major short-term support

EURUSD is ending the week near its lows. Price is still inside the bullish channel but is now challenging important support levels at 1.1750-1.18. Breaking below this level will imply next week we should expect more downside.

Green rectangle -target if channel holds

Pink line- short-term support

Price is now at 1.18 and is challenging the pink support trend line. Support is also found by the lower channel boundary around 1.1760. Bulls need to defend this level and bounce strongly next week. Otherwise we should expect a move towards 1.16. Resistance is at today's highs at 1.1865 and breaking above this level will be sign of strength. Currently I prefer to bet on the bullish scenario as price remains inside the bullish channel. I prefer to be long here at 1.18 with 1.1750 stop and targets towards 1.21.