EUR/USD made another touch at the important support trend line at 1.1250 and bounced. I continue to expect price to move towards 1.1350-1.14 area for a lower high. Trend remains bearish but in the short-term I expect a bounce.
Red line – important resistance trend line
Green line – important support trend line
Black lines – bullish divergence
Black rectangles – bounce targets
EUR/USD has support at 1.1250 and resistance at 1.1350-1.14. EUR/USD is still providing bullish divergence signs in the 4-hour RSI and this is an important warning for bears. Price is expected to bounce towards 1.1350 at least over the coming sessions. Ideal target would be at 1.14 and to test the downward sloping red trend line resistance. As long as price is below 1.15 medium-term trend remains bearish.
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