EURUSD has reached the 100% Fibonacci extension at 1.1860 and is now trading a bit lower. Price remains in a bearish trend and the RSI has still not reached oversold levels in the Daily chart. We might see a bounce soon but there are many chances this downward move has more ground to cover.
In the past we talked several times of the possibility of a bigger reversal towards the 38% Fibonacci retracement of the entire upward move. The first target we had in our mind was the 38% around 1.17. Now at the same area we find the 261.8% Fibonacci extension of the first leg down from 1.2243 to 1.1991. At the 1.1850 level we find the 100% equality of the first downward move from 1.2348 to 1.1951. This is an area where we would expect a bounce in price even if it is temporary. Bears remain in control of the trend.
