EURUSD made a new lower low earlier today at 1.1808. Trend remains bearish. The RSI is making a bullish divergence. Bears need to be cautious as this divergence could lead to a bigger reversal to the upside. Bulls continue to have hopes for a reversal as long as price is above 1.1750.
Green line - resistance
EURUSD has resistance by the green trend line at 1.1890. Breaking above this level will be a first sign of a reversal. So far we only have a warning sign by the bullish divergence. For the reversal to be confirmed price will need to break above 1.1975. Until then price could just be making counter trend bounces for new lower lows. At current levels I believe the downside potential is limited to another move lower towards 1.1750. I believe the chances for a bigger bounce or trend reversal are rising. Traders need to be cautious. Bears should not be greedy at current levels.
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