EURUSD is in a bearish trend. Price is making lower lows and lower highs. Price has also activated a head and shoulders pattern and is targeting lower levels closer to 1.10-1.12. However in the short-term we might see a bounce towards 1.18-1.19 before continuing lower.
Green line - major support
Red lines - bullish RSI divergence
Despite making lower lows and lower highs, the RSI is making higher lows. This is a bullish divergence. This is a warning that the down trend is weakening and a bounce is imminent. I would not be surprised to see price move higher towards 1.1750-1.18 which is major resistance area. If price continues lower and the RSI provides new lower lows, then we should expect price to make shallow moves higher and continue lower towards 1.16-1.15.
