Violet lines- Fibonacci retracement levels
Black line- support trend line
EURUSD is making new lower lows. Price is trading below 1.0650. Price has broken below the 23.6% Fibonacci retracement and is now has the potential to reach the next Fibonacci target at the 38% retracement. Short-term resistance is found at 1.0805. As long as price is below this lower high, bears will remain in control of the short-term trend. The RSI has not reached oversold levels yet in the daily chart. Over the next couple of sessions we might see a bounce higher but overall we expect EURUSD to continue lower towards the 38% Fibonacci level.
