Red lines - wedge pattern
Blue line- bearish RSI divergence
Black line- short-term horizontal support
Green line- short-term resistance
EURUSD is trading at 1.0615 as price continues to move sideways and above the key short-term support of 1.0570. Yesterday EURUSD was under pressure as price declined towards the key support, but it was defended successfully by bulls. Recently EURUSD broke out of a wedge pattern. This sign of weakness combined with the bearish divergence signals by the RSI have increased the chances of a major downward reversal. A break below 1.0570 would confirm this short-term trend reversal to the downside. Until then, bulls have hopes for a move higher towards 1.08. Short-term resistance is found at 1.0655.
