Short-term technical analysis on EURUSD

EURUSD is in a bullish short-term trend. Price as expected has made a reversal to the upside and confirmed the reversal by breaking above 1.1810-1.1830.

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Red line - resistance (broken)

Blue line - bullish divergence

The RSI bullish divergence combined with the break above the red trend line resistance was the bullish signal we were expecting. EURUSD should continue making higher highs and higher lows at least until it reaches the 38% Fibonacci retracement at 1.1945. Short-term support is found at 1.1850 and next at 1.18. Resistance is at 1.1945 and next at 1.20. We remain bullish as long as price is above 1.18.

The material has been provided by InstaForex Company - www.instaforex.com

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