05.10.202215:03 Forex Analysis & Reviews: EURUSD technical analysis for October 5th, 2022.

Red lines- bearish channel

Blue lines- Fibonacci retracement levels

EURUSD is trading around 0.9920. Short-term trend is bullish as price is making higher highs and higher lows since the 0.95 lows. Price remains inside the medium-term bearish channel and has already retraced 61.8% of the last decline from 1.0198. At the 61.8% Fibonacci level we usually see trend reversals. EURUSD is turning lower from the 61.8% retracement and the RSI is also turning lower from overbought levels. It is too soon to tell if the entire bounce is over and the down trend resumes. The upper channel boundary is higher and technically we can still reach it without hurting the medium-term bearish trend. Nevertheless we need to keep a close eye at the 61.8% Fibonacci level we are currently in because there are increased chances of a reversal here.