EURUSD is breaking below the bullish channel. In our last analysis we warned bulls of the bearish divergence signs by the RSI. The RSI was not making new highs as price was and this was a sign of weakness as we explained yesterday. Price is now challenging channel support.
Blue lines – bullish channel
Black line – bearish divergnce
EURUSD is breaking lower. Support at 1.13 is now being tested. A break below it will open the way for a move much lower towards 1.1150. Resistance is now at 1.1360 and as long as price is below that level I’m bearish looking for a pull back. First target is at 1.1175 and next at 1.1020.