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In our last analysis on EURUSD, we marked the support area where we thought EURUSD would form a higher low and reverse to the upside. EURUSD made recently a high around 1.0750 and pulled back towards 1.0650 inside our target area.
Blue lines- medium-term bearish channelYellow rectangle- support area
Green line- support trend line
EURUSD continues to respect the green support trend line and is now bouncing higher after making a higher low inside the yellow rectangle area. Our expectation is for EURUSD to remain in a short-term bullish trend as long as price respects the green support trend line. If bulls continue to control the short-term trend, then we could see EURUSD climb towards the blue line where the upper channel boundary is found (1.0880-1.0850).
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