The EUR/USD pair is bouncing from the support area of 1.1430-1.1450. However, bulls are not out of danger. They will need to break out above the short-term bearish channel and eventually recapture 1.15.

Black line - important trend line support

Purple lines - bearish short-term channel

EUR/USD, as expected, has pulled back for a test. In order for this to be a back test rather than a failed breakout, we will need to see the prices bounce off this area and recapture 1.15. With a short-term lower low and lower high, we have seen the creation of a short-term bearish channel as shown on the chart above. Resistance is found at 1.15 and support at 1.1420. Bulls need to exit this channel and break through the next resistance and short-term previous high at 1.1540. This will confirm the pullback is over and the breakout remains, so our target is 1.17. If the prices continue to stay inside this channel, we should expect a breakout below 1.14 over the coming days.