Red lines- wedge pattern
Blue line- bearish RSI divergence
EURUSD is trading around 1.0569 starting the week on a positive note. Price remains inside the upward sloping wedge pattern we noted last week. Support by the lower wedge pattern is found at 1.0485 and resistance at 1.0660. Combined with the fact that the RSI is making lower highs and price higher highs, this bearish divergence is an important warning for bulls. This is not a reversal signal but only a warning. If combined with a break out of the wedge pattern and below horizontal support of 1.0444, then we will get our reversal signal.
