FX.co ★ EURUSD bulls step in to support bullish trend

EURUSD is trading at 1.2070 and despite being ready to break down as price was about to exit the bullish channel, bulls stepped in and pushed prices back above 1.2050 near short-term highs. Trend remains bullish as price continues making higher highs and higher lows.

Green lines - bullish channel

EURUSD remains in a bullish trend. Price only briefly moved outside of the bullish channel yesterday and it moved sharply back inside making new higher highs. Trend remains bullish as long as price is above 1.2010 but traders need also to be cautious as the RSI is providing a bearish divergence warning. The RSI is not making higher highs. This is a warning and not a reversal signal. The reversal might come soon, so traders need to be cautious. Exiting the channel and starting a sequence of lower lows and lower highs will be the confirmation of the trend change.