Red lines- bearish channel
Blue line- lower channel boundary
EURUSD is trading around 1.0885 still above the medium-term lower channel boundary. In the near term EURUSD has formed a new bearish channel shown by the red boundaries. Price is approaching the upper channel resistance at 1.09. A rejection here would be a bearish sign. A rejection at the red channel resistance could lead to a reversal and a new lower low towards 1.08. A daily close below the lower channel boundary would also be a bearish sign. EURUSD continues forming lower lows and lower highs. A break below 1.0863 would be a sign of weakness and a sign of more selling to come.
