Red lines- bearish channel
Blue lines- Fibonacci retracements
EURUSD is trading just above 0.97. Short-term trend is mixed as price has stopped the decline from the parity level and at the same time there are some potential reversal signs. Price is trading around the 61.8% Fibonacci retracement of the entire rise and at this level we could see a bigger reversal to the upside. EURUSD remains inside the medium-term bearish channel but is also showing reversal signs. If bulls manage to start a new sequence of higher highs and higher lows, then we could see EURUSD reach the upper channel boundary close to 1.0150. Failure to hold above the recent low at the 78.6% retracement, will be a new bearish signal.
