Blue lines- short-term bearish channel
Red line - medium-term bearish channel
Green lines- bullish RSI divergence
In our previous analysis when EURUSD was trading around 0.9550-0.95 we warned traders that there are increased chances of a bounce higher towards 0.97-0.9750. Price justified such a bounce and so did the technical picture in the 4 hour chart. EURUSD was trading very close to the short-term and medium-term channel boundaries. Combined with the fact that the RSI was not providing lower lows, the chances for a bounce had increased. Yesterday price bounced as high as 0.9751 and today is getting rejected at the upper channel boundary. Yesterday's high is very important resistance and since the RSI has not reached overbought levels, I believe there is still room to the upside for EURUSD. Next major resistance is at 0.9830-0.9845 and next at 0.9950.
