EURUSD remains in bullish trend but RSI provides us with the first warning

EURUSD is making higher highs. Price remains inside the bullish channel and as long as price is above 1.1315-1.13 bulls will have the upper hand. The RSI is however not making higher highs and doesn’t follow price. This is a bearish divergence.

Exchange Rates 10.06.2020 analysis

Blue lines – bullish channel

Black line – bearish divergence

As long as price is inside the bullish channel bulls have nothing to fear. The bearish divergence in the RSI is just a warning and not a reversal signal. EURUSD could continue making higher highs and higher lows, however traders need to be cautious as this divergence shows signs of a weakening bullish trend. Support is found at 1.13-1.1315 and next at 1.1275. Breaking below this support area will open the way for a move towards 1.1150. Until then we should not rule out a move above 1.14.

Source: EURUSD remains in bullish trend but RSI provides us with the first warning

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