EURUSD 1.0850: Bearish – Tests the 6-week low at 1.0818

EURUSD extends the current 5-week downleg from the 1.1435 high (June 18, 2015) to test the 6-week low at 1.0818 (May 27, 2015). Technical indicators remain weak, signaling further downside. A breakdown below the latter would risk 1.0665 (April 23, 2015 low) next. The 1.0906 and 1.0961 (near 38.2% of the 1.1215/1.0819 fall) resistance zone should cap bounces. Only reclaiming the 1.0961 area would relieve the bearish pressure.
Outlook:
Short term: bearish
Long term: bearish