EURUSD is pushing towards 1.11 after making a higher low at 1.09 three days ago. The price structure in EURUSD is starting to begin feeling bullish. It is very possible we are at the early stages of a larger reversal but too soon to call it.

Black line -resistance

In previous posts we noted that while EURUSD was trading near the lower channel boundary, the chances were in favor of a strong bounce higher. Trend remains bearish as long as price is inside the downward sloping channel, but the upside potential should not be ignored. EURUSD is bouncing higher towards the black resistance trend line at 1.11 and a break above it, will push EURUSD towards the upper channel boundary close to 1.1250-1.13. The Rsi had already given us bullish divergence signals warning bears that the downtrend was weakening. Bulls now need to defend 1.09. As long as price holds 1.09, the upside potential is bigger and we prefer to be neutral if not bullish.