FX.co ★ Technical analysis of EUR/USD for May 21, 2018

EUR/USD is making new highs early this week. Price still has been inside a medium-term bearish channel since 1.24, but I believe that this week we will see a reversal and strong bounce in EUR/USD. With the RSI diverging and price touching three times the lower channel boundary, a bounce is imminent.

Red lines - bullish divergence

Blue lines - bearish channel

Yellow line -expected move

The EUR/USD pair is trading below the Ichimoku cloud, but the bullish RSI divergence tells me that at least a bounce towards the cloud resistance or the upper channel boundary around 1.20 should start this week. I'm a buyer of EUR/USD at the current levels.