Blue lines- Fibonacci retracement levels
Red lines- bearish channel
EURUSD remains under pressure for the 9th straight week. Price is closing the week at new lower lows, approaching our initial target at the 38% Fibonacci retracement of the entire upward move from 0.9536. In the near term price has formed a red downward sloping channel and it continues to trade inside it. So far we have retraced almost 38% of the decline and we could see EURUSD continue even lower. In the near term a bounce higher is justified. In the medium-term we see the RSI has still not reached oversold levels and remains with a negative slope. Another bounce towards 1.0750 is not out of the question. Next week we could start with such a bounce higher.