After a short-term downward momentum in EUR/USD, a new sideways channel has been formed in the range of 1.1585/1.1625.
There is an assumption that the price is flat due to the European Central Bank's (EC)s upcoming monetary policy meeting, leading to accumulation. Consequently, a bearish trend is likely to start with a sharp rise in speculation.
The quote is moving along the 23.6 Fibonacci level, which confirms a trading flat. The Relative Strength Index (RSI) is located at low levels, signaling a downward trend.
There is a bearish trend that started in early June where a corrective move could not change the current movement on the daily chart.
Outlook
A trading flat in the 1.1585/1.1625 range is highly likely to end today with a breakout of one or the other boundary of the established channel.
One could open long positions after the quote consolidates above 1.1630. Meanwhile, if the price fixes below 1.1580, traders should consider entering short positions.
In terms of complex indicator analysis, there is a variable signal for short-term and intraday trading due to the sideways price movement.
