Red lines- bearish channel
Green line- bullish RSI divergence
EURUSD is trading around 1.0780. Recent price action suggests that there are increased chances the entire decline from 1.1092 is complete. The bullish RSI divergence shown today if combined with a channel breakout, then we will be very confident that a counter trend bounce has started. Today's new lower low in EURUSD was not followed by a new lower low by the RSI. Price has sharply reversed the daily candle and if the close is near the daily highs, we should expect price to move higher until the end of the week. Price is now challenging the upper channel boundary. This is important short-term resistance. The channel boundary is at 1.08. A daily close above 1.08 would be a positive sign for the next couple of trading sessions. If price breaks above the channel, then our first target would be 1.0830 and our second and most probable target 1.0880.
