In yesterday's analysis we warned bears that the time for a trend reversal in EURUSD was close. Price has broken today above and out of the downward sloping wedge pattern it was in and is trading towards 1.13.
Blue lines - bullish divergence
The RSI has warned us on time of the imminent reversal. Price has now broken the resistance trend line and has moved above the recent high of 1.1275. This constitutes a trend change, at least for the near term. Taking into consideration the fact that we are at a major turning point, we warned traders that between 1.12 and 1.13 which was our target area, we turned neutral if not slightly bullish. There is huge potential for the upside in EURUSD. It is still too early to talk about a major low. Bulls need to take this one step at a time. Currently I believe that they start taking control of the trend.
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