In our analysis after the FOMC announcement, with price trading just below 1.13, we warned traders that as long as price is inside the bearish channel and below 1.13, price would be vulnerable to a sharp decline to new lower lows.
Green line- support (broken)
EURUSD is trading around 1.1150. Technically trend remains bearish as price is making lower lows and lower highs while trading inside the bearish channel. Our line in the sand is at 1.1350-1.1370. As long as price is below this area trend will remain bearish. Any bounce will be considered as a selling opportunity. The RSI is providing its first bullish divergence. This is not a reversal signal. This is only a warning that the downtrend is weakening. This does not mean we should expect a major reversal. This is a sign justifying another bounce maybe towards 1.12-1.1230. I expect to see this downtrend continue.
