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Red lines - bearish channel
EURUSD is trading around 1.0812 slightly higher than where it closed on Friday. Friday was a bounce day as price rose towards the upper channel boundary. Short-term trend remains bearish as long as price is inside the red downward sloping channel. At 1.0830 we find the channel resistance and a break above this level would be a sign of strength and short-term reversal. A rejection at current levels will lead to a deeper decline towards 1.07. Since the last low on Price was followed by a new lower low in the RSI, I consider this bounce as a pause of the down trend and a new lower low is the most probable outcome.
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