EURUSD is trading around 1.1020. Price continues making higher highs and higher lows. Price remains inside the red upward sloping channel. Short-term trend remains bullish. In previous posts we noted that a pull back is justified but so far we have no confirmation of a short-term trend change. We also observe the RSI forming a lower high despite price making a higher high. This is a bearish divergence. This is not a reversal signal but traders should be cautious. Price could continue rising towards 1.11. We continue to expect a pull back to be seen by end of the week.
The material has been provided by InstaForex Company – www.instaforex.com
Red lines- bullish channel
Black line- bearish RSI divergence
Green lines- key support area
EURUSD is trading around 1.1020. Price continues making higher highs and higher lows. Price remains inside the red upward sloping channel. Short-term trend remains bullish. In previous posts we noted that a pull back is justified but so far we have no confirmation of a short-term trend change. We also observe the RSI forming a lower high despite price making a higher high. This is a bearish divergence. This is not a reversal signal but traders should be cautious. Price could continue rising towards 1.11. We continue to expect a pull back to be seen by end of the week.
The material has been provided by InstaForex Company – www.instaforex.com
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