EURUSD pulled back as low as 1.1240. In our last analysis we expected price to pull back towards the lower channel boundary and our first target was 1.12. However price took more time moving sideways and thus the lower channel boundary moved higher.

Red line -major long-term resistance

EURUSD pulled back from Friday as expected on Monday and early Tuesday. Price reached the lower channel boundary as expected and is now bouncing to new higher highs. Trend remains bullish as long as price is inside the channel. The RSI could provide an early warning soon if price makes a higher high and the RSI not. Too early to tell. Key support now at 1.1240. Bulls do not want to see this level broken. Breaking below 1.1240 will open the way for a pull back towards 1.1150.