Red lines -bearish channel
Green line- bullish divergence
EURUSD continues to make lower lows and lower highs. Last week we warned that the rejection and reversal below 1.0285 was a sign of weakness. We confirmed the bearish momentum once price broke below 1.0150 and 1.01. We noted many times that the bounce was seen as a counter trend move and not as the start of a new up trend. This week starts with EURUSD making new lows below parity and with the potential to move even lower. As long as price is below last week's highs, we remain bearish medium-term. The RSI is providing another bullish divergence, but this is only a warning. Not a reversal sign. EURUSD justifies a reversal, but so far there is no sign of bears losing control of the trend.
