Violet lines- Fibonacci retracement levels
Red lines- bullish channel
EURUSD is trading above 1.08 as price continues trading inside the bullish channel making higher highs and higher lows. Despite the bearish warnings by the RSI, price continues making higher highs and higher lows. EURUSD is now approaching the 50% Fibonacci retracement of the entire decline from 1.2348. The 50% retracement provides resistance at 1.0935. As we said in previous posts, despite the warning signs by the bearish RSI divergence, trend remains bullish as long as price is inside the bullish channel. Support is key at 1.0485 and at 1.0565.