EURUSD is trading around 1.0730. Price is currently trading above the upper channel boundary. The previous 4 hour candlestick was a bullish hammer reversal pattern. Combined with a new bullish candle and a break above the channel, we get a reversal signal. There are increased chances that EURUSD has completed the entire decline from 1.1092. A bounce towards 1.0770 and 1.0830 is very likely. We believe that it is more probable for price to bounce than to continue making lower lows. The RSI suggests that it is time for a bounce as the downward momentum is weakening.
The material has been provided by InstaForex Company – www.instaforex.com
Red lines- bearish channel
Blue line- bullish RSI divergence
EURUSD is trading around 1.0730. Price is currently trading above the upper channel boundary. The previous 4 hour candlestick was a bullish hammer reversal pattern. Combined with a new bullish candle and a break above the channel, we get a reversal signal. There are increased chances that EURUSD has completed the entire decline from 1.1092. A bounce towards 1.0770 and 1.0830 is very likely. We believe that it is more probable for price to bounce than to continue making lower lows. The RSI suggests that it is time for a bounce as the downward momentum is weakening.
The material has been provided by InstaForex Company – www.instaforex.com
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