FX.co ★ Technical analysis on EURUSD for October 5th, 2023.

Red lines- bearish channel

Blue lines- Fibonacci retracement levels

green lines-bullish RSI divergence

yellow rectangle- expected bottom area

EURUSD is trading around 1.0525. Price remains inside the red downward sloping channel. Price is bouncing higher for a second day in a row. So far we still consider this as a short-term bounce. As we mentioned in previous posts, we favor the reversal from current levels around the yellow rectangle area. Key Fibonacci support is also found in this area and the RSI has already provided bullish divergence signals. However as long as price is below 1.0620 trend will remain bearish. Price must break above the red channel in order to start talking about a trend reversal.