Red lines- bearish channel
Black line- support trend line
green lines- Fibonacci extension levels
EURUSD is under pressure. Price yesterday reached our target after the exit off the bearish channel. Price reached the 100% Fibonacci extension target and is now back testing the black upward sloping support trend line. The black support trend line provides support at 1.0555. So far this trend line has been respected. The RSI has turned back down from overbought levels. If EURUSD continues to respect the black trend line, we could see a new upward wave that could push EURUSD towards the 38% Fibonacci retracement of the entire decline at 1.0765. Short-term trend remains supported and controlled by bulls. Failure to hold above 1.0550 will bring bears back in control.
