EURUSD technical analysis

EURUSD got rejected at the resistance trend line we mentioned in our last analysis and is very close to making a new lower low. The RSI is far from making new lows. On the contrary the RSI seems ready to provide another bullish divergence.

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Green line -resistance

Blue line- bullish divergence

EURUSD is trading around 1.1825 and from current levels until 1.1750 we consider this area as a buying area as we believe the most probable scenario would be for price to make a strong move higher towards 1.20 at least. EURUSD resistance is at 1.1895. Breaking above it will give us a bullish signal. Support is at 1.18-1.1750. Price could make a new lower low but I believe the downside potential is very limited. Bears need to be very cautious.

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

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