EURUSD is making new 2021 lows. Price has broken below the 1.16 price level and the major Fibonacci retracement support. Next target is at 1.1490 where we find the 50% Fibonacci retracement of the entire upward move from 1.0640 to 1.2340.
The RSI is at oversold levels. This does not mean that the downward movement will end soon. Bears are in full control of the trend and as we mentioned yesterday, there are no reversal signals, only some warnings that price might bounce soon. EURUSD is correcting the entire upward movement from 1.06. The first major pull back reached the 38% Fibonacci retracement and then price bounced towards the highs of 1.2340. We are now in the second corrective leg and price was expected to break the 38% Fibonacci retracement. Our first target is the 50% retracement but the most common target is the 61.8%. It is too early to tell if price will reach the 61.8% level, but one thing is for sure, trend is bearish and trying to pick a bottom now is very dangerous like trying to catch a falling knife.
