Red lines- medium-term bearish channel
Blue line- parity
EUR after many years have broken below parity against the Dollar. Trend remains bearish as EURUSD continues making lower lows and lower highs. Every try to push price above parity has been met with selling pressures and the stay above it was so far short lived. EURUSD has made a low around 0.99 and bulls have made several attempts to recapture the 1 price level. So far they have been unsuccessful. In previous posts we noted that a bounce towards 1.0150-1.02 is justified. Even a bigger bounce towards the upper channel boundary is justified. However despite the bullish RSI divergence signals, there has been no confirmed reversal from the price. Our downside target remains at 0.97.
