FX.co ★ EUR/USD Bearish Divergence Brings Bears At The Table!

EUR/USD has climbed as much as 1.1806 level in yesterday's session but has failed to stabilize above the 1.1800 psychological level signaling buyer's exhaustion. The pair has slipped lower and is traded at 1.1736 level, the critical support stands at 1.1698 level.

The pair drops as the USDX is trading in the green today, still, EUR/USD will remain bullish even if we'll have a minor correction in the short term. EUR/USD shows a bearish divergence in the short term, but this is not enough for us to go short, only another lower low could signal further drop.

EUR/USD approaches the median line (ml) of the minor descending pitchfork, a valid breakdown could represent a short signal. You don't need to rush, EUR/USD is bullish, a minor correction will be activated only from below 1.1698 level.

Selling the bearish divergence is not a good move right now, EUR/USD could increase anytime again if the USDX will drop deeper. A valid breakout above the 1.1806 will validate a broader upside movement, will also bring a buying opportunity.

• EUR/USD Trading Tips

Buy a valid breakout above the 1.1806, another higher high, with the target at 1.19 psychological level. The failure to touch the median line (ml) will send EUR/USD higher quickly.

Sell only a valid breakdown below the 1.1698 static support, former low, the first downside target is at the lower median line (lml) of this minor pitchfork.