The EUR/USD pair has bounced suddenly after a strong move down following the breakout from the ascending channel. It has now risen to re-touch the same channel-line it broke out of where it currently appears to be consolidating. It will probably correct from here to at least 1.3095, with a break of the previous 1.3025 lows required to confirm a continuation lower. A bullish continuation higher, however, would take it to the resistance line at 1.3205.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst