EURUSD is under heavy pressure. Despite yesterday's bounce above 1.09 bulls were not able to hold price above the support of 1.0870 and the pair is now trading below 1.08.
Yesterday's Daily candlestick was a bearish hammer pattern. Price made a long upper tail yesterday and despite the strong upward move, it closed near its daily lows. Today price remains under pressure. EURUSD gave us some signs of a possible reversal but still feels vulnerable to more downside. The RSI continues to provide bullish divergence signs, but as we said many times before, the bullish divergence is only a warning and not a reversal signal. In order to confirm a bullish reversal bulls will need to recapture at least 1.09 and stay above it. Yesterday's high at 1.0936 is now the most important short-term resistance level that must be broken.
