FX.co ★ Technical analysis on EURUSD for May 17th, 2023.

Blue line- lower channel boundary

Red lines- bearish channel

EURUSD is trading around 1.0840. Short-term trend remains bearish as price continues making lower lows and lower highs inside the red downward sloping channel. Price broke out of the medium-term bullish channel it was in. Price has reached as low as 1.0811. As we said in previous posts, EURUSD was vulnerable to more downside. Price reached our initial target of 1.0850-1.08. The RSI has just started forming higher lows in the 4 hour chart. This is not a reversal signal but an indicator that in the near term we might see a bounce higher towards 1.09. On a daily basis the RSI is far from oversold levels. We expect price to continue lower.