Technical analysis of EUR/USD for August 31, 2018

EUR/USD broke out of the bullish channel and pulled back towards short-term support of 1.1650. Price moved below support but did not stay there and reversed to the upside. Price is now below 1.17 and bulls need to break above 1.1715 in order to see new highs towards 1.1750-1.1770.

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Green lines - bullish channel

EUR/USD bulls are stepping up here at 1.1650 supporting the pair. Support is at 1.1660. A 4-hour close below it will open the way for a move towards 1.16 and lower. If bulls manage to move back above 1.17 we could see more strength towards 1.1750 or higher. However the RSI is showing bearish divergence signs. Bulls need to be very cautious. My most probable scenario is to see prices break below 1.1650 and move towards 1.16-1.1550.

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