EURUSD bounces again from buy area.

EURUSD is now trading once again above 1.18 having respected the key support of 1.1750. As we mentioned in our last EURUSD analysis, price was making new lows and the RSI was not. This was for us an important bullish signal.

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Red line - major support

Blue lines- bullish divergence

EURUSD is bouncing once again. Trend has not made a confirmed trend reversal yet. Price will need to break above the recent high of 1.1881 for a confirmed reversal. However I believe that with the RSI providing bullish divergence signals, EURUSD is a buy around and below 1.18. Bulls do not want to see the RSI make a lower low. On the other hand bulls also need to break above 1.1880 to show a sign of strength. Bullish divergence signals could go on for some time, that is why bulls need to be too aggressive before trend change is confirmed.

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

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