EUR/USD has made a new lower low relative to the January low. This is a bearish development for the medium- and longer-term trend. Our expectations of a bounce were not confirmed as price remained below 1.1350 resistance and provided a new lower low below 1.1280. Nevertheless I believe bears will get better entry points after a bounce rather than short the market at current prices.

Green line - trend line support

Black rectangles - bounce targets

Black lines - bullish divergence

Despite the new lower low the RSI continues to provide a bullish divergence. The entire decline from 1.15 will soon be over if it is not already over and I continue to expect a bounce. Targets for a bounce are at 1.1360-1.1370 and at 1.1420. Trend remains bearish as long as price is below the red downward sloping trend line. Medium to longer-term target is at 1.10 as long as we trade below 1.15.