EURUSD reaches short-term target of 1.0950.

EURUSD remains in a bearish trend. Price has reached our 1.0950 target after breaking below 1.11-1.1050. The bullish divergence signs in both daily and weekly charts remain but there is no reversal sign yet. Best strategy remains to lower stops if short and wait if you want to go long.

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Blue line - resistance trend line

Green rectangle - support

Red rectangle - target if support fails to hold

EURUSD has reached our red rectangle target area after breaking below the green rectangle support area. There are bullish divergence signs but trend remains bearish as long as price is below the blue trend line resistance. A bounce towards the green rectangle area is justified. A back test of that support area is expected this coming week. A rejection at 1.1050-1.1060 will open the way for a move below 1.09. If price breaks and holds above 1.1060 we should expect to see a test of the blue downward sloping trend line resistance.

The material has been provided by InstaForex Company - www.instaforex.com