EURUSD remains in a bearish medium-term trend but shows signs of a possible bounce back towards 1.12. Trend remains bearish as long as price is below 1.1230-1.1260 but we find horizontal support from previous lows at the current trading area of 1.1150-1.1160.
Red line - major trend line resistance
EURUSD is bouncing off the 1.1150 support area as shown by the red rectangle in the 4 hour chart above. EURUSD has made an important low back early May at current levels that lead to a move towards 1.1260. If this support area holds we could see a bounce towards 1.12-1.1230 where we find the first important resistance levels. Bulls need to break above 1,1260 in order to regain control of the trend. Until then every bounce is considered selling opportunity. Failure to hold above 1.1150 will lead price below 1.11.
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