In the Daily chart EURUSD is making new lows but the RSI is not. This is warning signal that the downtrend is weakening. Technically trend remains bullish. The RSI bullish divergence is just a warning. Not a reversal signal.
In previous occasions when price was trading below 1.18 we were bullish looking for an upward reversal. This time we need to be a little bit more cautious as there are increased chances of a break down. EURUSD is still trading above 1.1750 support level. However a trend change will only be confirmed if price breaks above 1.19. The bullish divergence is an important sign for bulls, nevertheless we need not forget that bears remain in control of the trend.
