Despite strong rally started with 1.26 low EURUSD still continues to move within strong negative trend determined by a parallel channel. 1.3480 has proved to be short term peak since several days of testing that level has failed to overtake it. Moreover the latest divergence between the price and the MACD histogram indicated trend reversal around that level. Last few months pair moved in short term positive parallel channel within the negative one. If EUR manages to rise above 1.35 resistance and successfully brake the negative channel resistance we could see brake of the downtrend with another strong resistance around 1.36 (200-day moving average). If the bearish case scenario occurs a step down under 1.31 could open the way to 1.26. The price move for the next couple of months is limited to the range 1.26 – 1.36.