Red lines- bearish channel
Blue line- bullish RSI divergence
EURUSD is trading around 1.0012 after reaching as high as 1.0094 earlier today. Price has reached very close to the upper channel boundary resistance. First attempt to break above and out of the channel has failed. Price is showing rejection signs. However it is too soon to call the bounce over. Resistance remains key at 1.0120 by the channel boundary. Short-term support is at 0.9870. As long as price is above this level, bulls have hopes for more upside, specially if they recapture 1.0120. The bullish RSI divergence warned us of a coming bounce. Inability to break out and above the channel would be a sign of weakness. Bulls need to be very cautious. Downward trend could resume anytime now.
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