Green lines- Fibonacci retracements
Red line- RSI bearish divergence
EURUSD is trading above 1.05. Short-term trend remains bullish as price is approaching the first important Fibonacci resistance level at the 38% retracement at 1.0590. The RSI however provides an important warning in the Daily chart. The RSI has not made a higher highs, instead it provided a bearish divergence. This is not a reversal signal but an important warning bulls should not ignore. With non-farm Payrolls due out today, volatility is expected to rise and we should not be surprised if price gets rejected at the 38% retracement and a pull back starts. Major support is at the 1.0290 low and below that level we will be talking about a short-term trend reversal.
