Red lines- bearish channel
EURUSD has started the week where we left it. Under pressure and in short-term bearish trend. Price continued on Monday to make new short-term lower lows and has managed to reach as low as 0.9554. The decline has surpassed our initial expectation of 0.97, a target we have been talking about once it broke below 1.03. Price remains inside the downward sloping channel and today it touched the lower boundary. The RSI has re-entered oversold levels. Trend remains controlled by bears and we continue to consider each bounce as a selling opportunity. A bounce towards 0.97-0.98 is justified from current levels. In the near term over this week we could see such a bounce, but it is too early to call a bottom of the main trend.