EURUSD is trading again below 1.18 and is making new lower lows. The RSI continues to make higher lows providing us with another bullish divergence. At current levels I’m bullish EURUSD looking for a major upward reversal. I’m bullish as long as the RSI continues to diverge and as long as price on a weekly basis is above the neckline support.
Red line – major support neckline
Blue lines – bullish RSI divergence
EURUSD is approaching the 1.1750 support. Resistance is found at recent high of 1.1880 and a break above this level will confirm the short-term trend change from bearish to bullish. So far we only have indications that a reversal is imminent but no confirmation. I believe there are high chances of a reversal occurring this week if not tomorrow.