EURUSD remains in a bearish trend making lower lows and lower highs. Price has reached our 1.1750 target after breaking below 1.18 and is moving lower. Price is trading below the 61.8% Fibonacci retracement. Bulls do not want to see price move much lower than this retracement level as the chances of a reversal will decrease.
The RSI in the 4 hour chart is providing us with a bullish divergence. This is not a reversal signal, it is only a warning that bears should not be overconfident. A bounce higher is justified from current levels. Resistance is at 1.1790 and a break above this level will signal a bigger bounce is coming. If the RSI makes a new lower low then we should expect the down trend to continue and price to challenge the 1.17-1.1665 lows.
