We talked about the main EURUSD currency pair with you last month. We see the construction of a large downtrend that moves inside the green channel.
For a long time, the price moved to the lower green area in a zigzag shape. At the end of November, the market reached the lower green wall, but the bears did not have enough strength to break through this support line. The price pushed off from it and began to rise within the ascending yellow channel.
Currently, the market is located near the lower yellow line. If the support level of 1.123 is broken, the upward trend will be destroyed. The bears will open the way to the lower green line and support level of 1.102.
However, if the bulls can find the strength to pull the market away from the lower yellow area and push prices to the upper yellow wall, then we can observe the continuation of the upward trend within the yellow channel in the direction of the resistance level of 1.145, which is located on the two upper walls of the yellow and green channel.
If the lower yellow line is broken, then we can consider opening sales deals. If a bullish trend is confirmed, then it is worth considering buying.