Red lines- bearish channel
Blue lines- Fibonacci retracement level
EURUSD is trading around 1.0627. Short-term trend remains bearish as price continues making lower lows and lower highs. The first trading day of the week has started with pressure against EUR. Price remains inside the downward sloping channel and has reached very close to our first pull back target. Our first pull back target was the 38% Fibonacci retracement level. With the RSI still not in oversold territory, we can expect EURUSD to continue lower. In the near term EURUSD is oversold and a bounce higher is justified. Upside bounce target is at 1.0710. So far no sign of such a bounce coming.
