EURUSD bulls face another rejection at 1.19
EURUSD has turned lower sharply today towards the key short-term support of 1.18. The RSI continues to provide bearish divergence warnings and it is highly probable that Dollar strength will be the main scenario over this week.
Blue lines – bearish divergence
Price has managed to peak above 1.19 but sellers have stepped in again, pushing price towards 1.18. The bearish RSI divergence provides a warning that this is not the time to enter long positions or remain bullish. This is the time to be neutral if not bearish as a pull back is imminent. As long as the bearish divergence stands bulls need be cautious. On the other hand bears will need to show more signs of strength in order for a deeper pull back to follow. Bears will need to break below 1.18-1.1750 support area, otherwise a sideways movement will relieve the RSI from overbought levels and could give bulls time to gather strength for the next upward move.
The material has been provided by InstaForex Company – www.instaforex.com