FX.co ★ EURUSD continues to bounce according to plan

In previous posts we warned bears that a bounce towards 1.18-1.1850 was justified and bulls should expect one. Price is above 1.18 and making higher highs and higher lows. There is no trend change yet as we still consider this move as a short-term counter trend bounce.

EURUSD bears were warned by the bullish divergence in the RSI. Price has started making higher highs and higher lows after reaching our target of 1.17. Now price is approaching important short-term resistance area. If bulls manage to recapture this level then we might expect a bigger move higher and not just a counter trend bounce. Support is at 1.1780. Bulls are trying to get control of the short-term trend.