EURUSD has started the week where it finished on Friday. Price remains under pressure and in a bearish trend as we remain still inside the downward sloping channel since 1.2265.
Red lines - bearish channel
EURUSD has provided us with a bearish signal when it broke below 1.1535 last week. Price is now almost 100pips lower and trend remains bearish as price continues making lower lows and lower highs. Price justifies a counter trend bounce but as long as we trade below 1.1610 we remain bearish. Our target area remains between 1.13-1.12 but this does not mean we should see a decline straight towards that price area. Oscillators are oversold in the near term and we already have some bullish divergence warnings. Bears need to be cautious.
