EURUSD remains under pressure as Dollar bulls take control

EURUSD remains under pressure as Dollar bulls take control

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.

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