FX.co ★ Bears remain in control of EURUSD.

EURUSD is making new weekly lows. Price has reached as low as 1.1059 having broken below the January lows. Trend remains bearish. As expected price is moving closer towards the 78.6% Fibonacci retracement at 1.10. The inability to recapture the 61.8% retracement, has lead to this decline.

Black lines - Fibonacci retracements

EURUSD is making new lows as explained in our previous post. The weekly chart remains in a bearish trend but the RSI has started diverging. The RSI is not making new lower lows. The RSI has already provided two bullish divergence signals. This is an important warning for bears to be cautious. Of course there is no confirmation of such a reversal yet, but traders need to be very cautious.