Red lines- bearish channel
EURUSD is trading around 0.97-0.9770. Trend remains clearly bearish as there is no change in the sequence of lower lows and lower highs. Price is making new weekly lows as price is getting further away from parity. EURUSD continues to trade inside the medium-term downward sloping channel and is now approaching the lower boundary of the channel. The RSI has not made new lows, confirming another bullish RSI divergence. As we said many times before, divergence signals are not reversal signals. They are only warnings. The lower channel boundary is around 0.96. So far no trend change signals. Bears remain in full control of the trend.
