The EURUSD price line has been falling inside a bearish channel since early June 2022. The price line made some reactions to the midline, lower and upper lines, but it failed to break through this channel yet. Therefore, it is considered as a valid bearish channel. The RSI is now above 50 and has recently given a negative divergence signal, indicating a possible downtrend on the chart. The MACD histogram turned red and the MACD line and the signal line cross on the chart. The green area on the chart indicates a strong resistance level that is expected to drive the price down as it contains a large amount of supply. Traders can look to the price line and expect it to touch the aforementioned supply zone. There they can take short positions towards the support levels shown below.

• There is a resistance level at 1.03955 followed by resistance at 1.04955 and 1.06560.

Note: We do not suggest any investment advice, and these analyses are just to increase the traders’ awareness but not a certain instruction for trading.