FX.co ★ Disastrous April for EURUSD approaching 2016 lows.

EURUSD is trading below 1.06 today making new lower lows and lower highs. As we mentioned in yesterday's analysis, the market is most probably in a capitulation phase right now. EURUSD is now challenging the 2016 lows at 1.0350-1.04 area.

The support trend line from 2000 has been broken with this month's bearish candlestick. The RSI is making new monthly lows and has not reached oversold levels yet. There is no sign of a reversal or a stop to this downward move. Even if we saw a bounce higher, it would still be considered as a counter trend relief bounce. EURUSD justifies a bounce from current levels towards 1.0850.