EURUSD is bouncing higher towards resistance. Price is now trading at 1.1860 challenging the important resistance trend line coming from 1.2230. The RSI has warned traders of a coming bounce. If price is unable to break above 1.1875 soon, then we should not be surprised if EURUSD makes a new lower low towards 1.1750-1.18.
Blue line -bullish divergence
EURUSD remains in a bearish trend as price continues making lower lows and lower highs. Bulls will need to break above 1.1975 in order to confirm a trend change. Major support is found at 1.1750 and a new low towards 1.1750-1.1770 is still in play, as long as price is below the green trend line resistance. If price makes a new lower lows, it is important to keep an eye on the RSI. In the case of a second bullish divergence, the chances for a major reversal will increase dramatically.
