EURUSD started trading today around 1.1125 very close to recent lows. Price has recovered most of its losses since then but remains below the closing price from Friday. EURUSD remains vulnerable to new lows but also shows encouraging reversal signs to bulls.
The RSI is not following price to new lower lows. The RSI has so far provided us with two bullish divergence signals. A bounce towards 1.14 is probable as price is bouncing of the 1.1125 level. Above 1.15 we can start talking about a major upward reversal and a major low formation around 1.11. Until then anything is open and traders should be very cautious. Market volatility has increased substantially and the wide swings by market prices can be very misleading.
