EURUSD may be forming a cycle bottom at 1.2042 on 4-hour chart, further rise to test the resistance of the upper line of the downward price channel on 4-hour chart would likely be seen. As long as the channel resistance holds, the bounce from 1.2042 is treated as consolidation of the downtrend from 1.2747 (Jun 18 high), and another fall towards 1.1876 (2010 low) is still possible after consolidation. On the upside, a clear break above the channel resistance will indicate that the fall from 1.2747 has completed at 1.2042 already, then the following upward movement could bring price back to 1.2400-1.2500 area.
