EURUSD is trading below 1.13. Price is still inside the bearish channel since the high of 1.2265. Price continues making lower lows and lower highs. Price is now trading just above the lower channel boundary while the RSI is providing some warning reversal signs.
When price is so close to the channel boundaries, the chances for a bounce increase. Even if price bounces towards 1.16, trend will remain bearish as the upper channel boundary is above 1.16. However as we mentioned in our latest analysis, if we zoom out and look at the bigger picture, the price range around 1.12 is a critical Fibonacci retracement level where we usually see trend reversals. So far there is no such a sign of a coming reversal, but the chances have increased.
