EURUSD remains in a bearish trend. Price continues making lower lows and lower highs. Price is still inside the bearish channel we mentioned in our previous posts. However there are some signs that justify a strong bounce.
Blue lines- bullish divergence
In the 4 hour chart the RSI is not making lower lows as the price. The RSI has provided us with a bullish divergence. This is not a reversal signal but only a warning of a possible reversal. Resistance is at 1.1730. A 4 hour candlestick close above this level will be the first reversal signal we get. Combined with the bullish divergence, we could see price bounce toward s1.18 again. Until then trend remains bearish and bears in full control of the trend.
