EURUSD is under pressure today. Price has managed to reach as high as 1.1483 but bulls were unable to hold it near its recent highs and bears have managed to push price towards 1.1410. In our previous analysis we warned that price has reached our Fibonacci extension target and that a pull back was to be expected. The first pull back target was the broken channel resistance as a back test.

Black lines- bearish channel

Blue lines- sideways consolidation

Green lines- equal size moves

EURUSD is back testing the broken channel. Price is hitting the upper channel boundary from above and bulls do not want to see price break back inside the bearish channel. A bounce off the broken channel would be ideal for bulls. The 1.1390-1.14 area used to be key resistance during the sideways consolidation phase. Now it is important support. Failure to hold above this level would be a bearish sign.