EURUSD as expected has broken through short-term resistance at 1.1220-1.1230 area and has risen towards the first important short-term target of 1.1270. Price has now started making higher highs and higher lows in the 4hour chart.
Red lines – medium-term bearish channel
Green rectangle – support
Black line – short-term resistance trend line (broken)
EURUSD has reversed short-term trend to bullish.As long as price is above 1.12 trend will remain bullish. Medium-term trend remains bearish as price is still inside the downward sloping red channel and below the major resistance of 1.1330-1.1310. Bulls need to exit this bearish red channel and recapture 1.14 in order to hope for a move higher towards 1.15-1.16. Failure to hold above 1.12 will open the way for 1.11.
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