Red lines- bearish channel
Yellow rectangle- expected bottom area
Blue line- expected direction
EURUSD is trading around 1.0560. Short-term trend remains bearish as price continues forming lower lows and lower highs. Price remains inside the red downward sloping channel since the July top. In the daily chart the RSI has just entered oversold levels. In the near term we start seeing bullish divergence signs. We expect EURUSD to bottom around 1.0550-1.0450 and then start a new upward wave. For now bears remain in full control of the trend. So far there is no sign of a reversal.
