Red lines- bearish channel
Blue line- bullish divergence
EURUSD remains in a weekly bearish trend as price is still inside the downward sloping channel from June. Price continues making lower lows and lower highs. Currently we are in a bounce phase. Could this be a major low? The RSI has already warned us with 2 bullish divergence signals. However price has not broken the key resistance at 1.01-1.0150. The RI is gliding on top of the oversold boundary and price has not managed to reach the upper channel boundary yet. Every attempt to push higher has been crushed by more selling providing us with candlesticks with long upper tails. Short-term support this week is at 0.97 and a break below this could accelerate the selling and bring price towards 0.95. On the other hand, a weekly close above parity would be a promising sign for bulls.
