EURUSD failed to break below 1.0493 support and is now facing the channel resistance.

As long as the pair stays in the channel, the price action from 1.0521 could be treated as consolidation of the downtrend from 1.0828 and further decline to 1.0400 area is still possible.

On the upside, a clear break above the channel resistance will indicate that the downtrend had completed at 1.0493 already, then the following upward movement could bring price to 1.0700 – 1.0750 area.

Editor’s Note: Equity investors/traders can use the Currency Shares Euro Trust (FXE, quote) ETF to take positions in the euro without a FOREX account.  The ETF looks to track the price of the euro (EURUSD), minus ETF fee. The fund seeks to reflect the price of the euro with the shares representing a cost-effective investment relative to investing in the FOREX market.

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