EURUSD is trading below 1.09 in a bearish short-term and medium-term trend. The RSI continues to provide bullish divergence signs, but price has not confirmed any reversal signal. EURUSD justifies a bounce higher from current levels.
Green lines- bullish RSI divergence
The downside momentum is weakening as the RSI suggests. Price however continues making lower lows and lower highs. Short-term resistance by recent highs is at 1.0935 and a break above this level will provide the first sign of strength and the first short-term reversal signal. Upside potential is important as a short-term upward reversal could bring EURUSD towards the upper channel boundary around 1.1250. Downside potential is limited to a move towards 1.0750. At current level we continue to prefer to be neutral if not bullish.
