Technical analysis for EUR/USD for February 11, 2019

Technical analysis for EUR/USD for February 11, 2019

EUR/USD is showing signs that the downward move from 1.15 is nearly if not already complete. There are bullish divergence signs implying that soon we should see a bounce towards 1.14. 

Black lines – bullish divergence

Black rectangle- short-term bounce target area

Green rectangles – topping pattern

Red line – major resistance trend line EUR/USD is trading just above 1.13. The RSI is showing bullish divergence signs and I expect price to bounce. There is no reversal confirmation yet, but the warnings are there. Short-term resistance is at 1.1350 and if broken I expect EUR/USD to move at least towards 1.14. Major resistance is at the red trend line at 1.15. Support is at 1.1270-1.13 area. Bears should be very cautious and use tight stops as there are high chances of a move higher. Not breaking below support area of 1.13-1.1270 would lead to a bounce at least towards 1.14.

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