Red lines- bearish channel
Yellow rectangle- expected area to bottom
EURUSD is trading around 1.0540 after making a new lower low earlier yesterday at 1.0488. In our previous analysis we confirmed that trend remains bearish as price continues making lower lows and lower highs inside the red downward sloping channel. With the RSI at oversold levels and price touching the lower channel boundary, we warned yesterday that we expect prices to bounce from inside the yellow rectangle. EURUSD is oversold in the near term and at least a bounce is justified. Our minimum bounce target is around 1.0680-1.0650. So far there is no trend change confirmation in the near term yet.
