Interestingly, EURUSD broke the bearish channel to the upside last week, only to reach the 100-day moving average near the 1.01 level (orange line) before sleeping back below parity (1.00) by the Friday close. This is not the most bullish price action in a breakout, to say the least.

In fact, EURUSD could soon be headed even lower again. Yes, the channel was broken, but the slip back below 1.00 indicates the chances of it being a fake-out are pretty high. Moreover, the 100-day moving average held as resistance, which is an important indicator within trends.

EURUSD is now moving down toward the 0.9850 level, which should be the first support zone. It is the confluence of the 55-day moving average (blue line) and the prior swing highs. A bearish break here would reinstate the firm bearish break, and we could see EURUSD go for the 0.97 lows quickly after (which is the next support).