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EUR/USD Breaks Below Week-long Trendline

The EUR/USD has been bullish this past couple of weeks. I maintain that this is a bullish correction and that the dominant trend is still bearish. Today, we are seeing price action that might signal revival of this bearish outlook.

EUR/USD 4H Chart 8/13
(click to enlarge)

the 4H chart shows EUR/USD fail to reach the high made earlier int he week, and breaking below a rising trendline with a strong bearish candle. We are still not in the clear for a bearish outlook, but this can be the 1st early bearish signal for the short to medium-term. In the very short-term, let's see if the current bearish candle will hold its high of 1.1175. To the downside, I would monitor the 1.10 area as a short-term target. Then, if subsequent pullbacks can hold under 1.1125-1.1150, I would be more convinced of the bearish outlook and put the 1.08-1.0825 area in sight. Below 1.08, I would have the 1.0460-1.0520 in sight.

On the other hand, if price can climb back above 1.12, there is further upside risk in the short-term towards the 1.14 and the area just above it - consolidation highs seen in the daily chart. 

EUR/USD Daily Chart 8/14
(click to enlarge)