Blue lines- bullish channel
Red lines- bearish RSI divergence
Yesterday EURUSD made a new higher but the RSI continues forming lower highs. Technically trend remains bullish as price continues to make higher highs and higher lows. Price remains inside the upward sloping channel and as long as this is the case, bulls will remain in control. Short-term support is found at 1.0950 area. A break below this level will open the way for a bigger pull back towards the lower channel boundary support at 1.0785. Current market condition justifies a bigger pull back towards 1.08. Upside potential is limited.
