Red lines- wedge pattern
Blue line- bearish divergence
EURUSD is trading around 1.0645. Short-term trend remains bullish as price continues making higher highs and higher lows. Price got rejected at the upper wedge boundary and is turning lower. Price remains inside the wedge pattern. The new higher high in price at 1.0695 was not followed by a higher high in the RSI. The RSI provided another lower high thus a bearish divergence. The combination of the wedge pattern and the bearish divergence is a major warning for bulls. This should not be ignored. There are increased chances of a reversal. Support is at 1.0580. Bulls need to defend this level. A break below it would be a bearish sign.
