EURUSD is trading around 1.1850. Price is above the 1.1750 major neckline support however trend remains bearish as price continues making lower lows and lower highs. The RSI has provided us with the first bullish divergence in the Daily chart and this could be the first sign of a coming reversal.
Blue lines- bullish divergence signs
EURUSD remains in a short-term bearish trend. However this trend is weakening as the RSI points out with a bullish divergence. The previous two times in the Daily chart we observed such a bullish divergence, price reversed to the upside towards 1.22-1.23. Will we see a repeat to this pattern? Bulls have hopes of this happening as long as price is above 1.1750. Price could continue lower towards 1.1750 but the chances of an upward reversal are increasing as the bullish divergence remains. A break above 1.1975 will be the confirmation of the reversal.
