Blue line- resistance
Green lines- Fibonacci retracements
EURUSD is in a short-term bullish trend as price is moving above 1.04. We are now at short-term overbought levels with the first signs of a bearish divergence by the RSI in the 4 hour chart. EURUSD has still upside potential towards 1.0585-1.0650. So far price has retraced less than 38% of the decline from the May 2021 highs. After exiting the short-term bearish channel, our expectation was for price to at least reach the 38% Fibonacci retracement which is also where we find the blue downward sloping resistance trend line. Momentum remains bullish, but pull backs should be expected along the way.
