Red lines- wedge pattern
Blue line- RSI bearish divergence
EURUSD is trading around 1.0643. Short-term trend remains bullish as price continues making higher highs and higher lows. Over the last few sessions price has formed an upward sloping wedge pattern. This is a bearish formation. Combined with the RSI bearish divergence, we have a bearish warning that should not be ignored. EURUSD is now trading right below the upper wedge pattern boundary. Price made new highs but the RSI provided another bearish divergence. Support is found at 1.0550. A break below this support level will be a bearish reversal signal. Over the coming sessions we expect price to provide this reversal signal. The upside potential is limited.
