EURUSD is trading around 1.1250, nearly 300 pips lower from our bearish signal when price broke below 1.1535. Trend remains bearish as price is making lower lows and lower highs. But this is the time for bears not to get overconfident. The time for a reversal is approaching.
Black lines - Fibonacci retracements
EURUSD is trading below the 61.8% Fibonacci retracement. Price is making new lower lows but in the 4 hour chart the RSI is not making new lows. The RSI is providing a bullish divergence. This is not a reversal signal but only a sign that the downtrend is weakening. This is a sign that tells me that bears need to start being more cautious and start taking profits. A reversal to the upside is imminent. Next support area is found at 1.10 but I do not expect to see this price level any time soon. I believe it is more probable to make a reversal to the upside.
