EUR/USD 4H Chart: Channel Down
Comment: The bias towards the Euro is negative, but only in the near term. EUR/USD is expected to bounce off of the upper edge of the channel at 1.1250 and then head towards a cluster of supports between 1.1150 and 1.1115 dollars. The centrepiece of this demand area is the seven-month rising trend-line, which is reinforced by the March 24 low, weekly S1 and monthly S2. The price is therefore expected to rebound from 1.1150 and leave the confines of the pattern, as suggested by the four-hour and weekly technical indicators. The fact that bears are currently in a majority (57% of the SWFX market), further increases the likelihood of a soon reversal.