Red lines- bullish channel
Black line- bearish RSI divergence
EURUSD is trading around 1.0720. Short-term trend remains bullish as price continues making higher highs and higher lows. Price continues to trade inside the red upward sloping channel. Despite the new higher high by price, the RSI did not produce a new high, instead it produced a lower high. A pull back towards the lower channel boundary at 1.0550-1.06 is very probable. The bearish RSI divergence is an important warning we should not ignore. Key support remains at last Friday's low. As long as we trade above this level, bulls are in control.
