EURUSD has broken out of the bullish channel and combined with the bearish RSI divergence the signs of a bearish reversal have been confirmed. In our last analysis we noted that we expect prices to move lower towards 1.21-1.2050 at least.
Green lines – bullish channel broken
Red lines – bearish RSI divergence
EURUSD is moving lower. The 38% Fibonacci retracement is found just above 1.2050. I believe it is very probable to see a pull back towards that area this week. The RSI has still not reached oversold levels. Resistance is at 1.2280. Only a break above this level would cancel my view of lower prices. EURUSD short-term trend is now controlled by bears.