FX.co ★ Short-term expectations for EURUSD.

EURUSD earlier today made a new lower low around 1.1265, while it is trading around 1.13. Trend remains bearish and price has now reached the lower boundary of the bearish channel. In the 1 hour chart we observe some bullish divergence signals by the RSI. This is not a reversal signal, only a warning for short-term trend.

Blue lines - bearish channel

EURUSD justifies a bounce towards the 38% Fibonacci retracement and the 1.14 area. Price is at the lower channel boundaries and I expect support to hold around 1.1270. I believe it is highly probable starting from tomorrow, to see a move higher in price as a counter trend bounce. Our last trading signal came when price broke below 1.1535. Now it is time to turn neutral and protect profits.