EUR/USD Technical Analysis: Bid near 1.1140 but still trapped in a falling channel
- EUR/USD is stuck in a falling channel on the daily chart.
- A move through 1.1145 is needed to confirm a bull breakout.
EUR/USD is currently trading at 1.1140, representing marginal gains on the day, having hit a low of 1.1085 on Jan. 10.
On the daily chart, the pair is stuck in a falling channel, as represented by trendlines connecting Dec.31 and Jan. 7 highs and Jan. 3 and Jan. 10 lows.
At press time, the pair is trading within a striking distance from the channel resistance at 1.1145. A convincing move through that level would imply an end of the pullback from recent highs near 1.1240 and will likely bring in a re-test of that level.
On the other hand, a rejection at the falling channel resistance may end up inviting stronger selling pressure, leading to a drop below the Jan. 10 low of 1.1085.
Trend: Bullish above 1.1145