EURUSD has been trading in a descending channel formation which began on the 8th of this month. Today saw a retest of the upper channel which held again and we then saw a retracement back to the 38.2% level of the move up from Fridays low. Towards the later part of this week we are looking for a retest of the lower channel line. I have drawn a confirmed trendline connecting the last 3 swing lows which will need to be broken before considering a short position. If we see a move below 1.13016 level we could see an intraday head and shoulders pattern which would add more conformation to the downside.