EURUSD Tests an Important Support Level

The market continues to move within a large bullish channel.  At the moment, the price is right on its lower bound, so the market is at a fork, and it is not yet clear what scenario the price will choose.

If we see an increase in the price and a break of the resistance level of 1.115, which is on the upper green bound, then a path may be opened for the bulls in the direction of the upper wall of the yellow channel and the resistance level of 1.136.

However, if in the near future the bears manage to break below the current level, i.e. below the yellow support line, then the decline may continue to the next important support of 1.092, which is on the lower green bound.

So let’s keep an eye on which scenario the market will choose.