Last week we talked about the potential of a reversal for the EURUSD from the 61.8% Fibonacci retracement level. Price did not reverse its short-term trend from that Fibonacci level but instead today broke below it and is moving towards the next Fibonacci level.
Blue lines- bearish channel
Black lines -Fibonacci retracements
EURUSD has formed a bearish channel and is trading inside it. As long as this is the case, short-term trend will remain bearish. Price has now reached the 78.6% retracement level. Resistance by the channel is at 1.1030. Major support remains at 1.0945. However the more price remains inside the channel, the more the chances of breaking below 1.0945. No sign of a reversal yet. Bears remain in control of the trend.
