Red lines- medium-term bearish channel
Blue lines- Fibonacci retracements
Green lines- Fibonacci extension targets
EURUSD is trading below 0.97. Price remains under pressure following last weeks ending action. With a rejection at key Fibonacci retracement, EURUSD started forming a bearish pattern of new lower lows and lower highs. We warned traders on time that a move lower towards at least 0.9760 was coming. Our last analysis warned that more downside should be expected. EURUSD remains inside the medium-term bearish channel. Price has started making lower lows and lower highs as we move below the 61.8% Fibonacci retracement of the rise from 0.9538 to parity against the Dollar. We have surpassed the 100% extension target and we are approaching the 161.8% target. Bulls need to recapture the 61.8% retracement level as this is key support. Bears remain in control of the trend.