EURUSD is in a bearish trend. Price has broken below the key support neckline at 1.1750 and activated a head and shoulders bearish pattern. Price bounced towards 1.18 back testing the broken neckline and got rejected. Price continues making lower lows and lower highs.
Blue lines - Pitchfork
EURUSD is about to make new lows below 1.1706. Trend remains bearish. Our minimum target is the middle pitchfork line at 1.1615-1.16 area. As long as price is below 1.1805 short-term trend will remain bearish. The Head and shoulders pattern has much lower targets in order to be complete, however in order for these targets to be achieved, I would expect a bigger bounce in EURUSD to form a lower high first and then push lower. Short-term oscillators are providing bullish divergence signals, something decreases the chances of continuing lower in the near term. If the RSI provides new lows as price does, then bears will remain in full control of the trend.
