FX.co ★ Bulls remain in control in EURUSD

EURUSD is trading near 1.21 and price continues to trade inside the boundaries of the bullish channel it is in since 1.17. Price so far made a high at 1.2115. Price is very close to key trend line resistance at 1.2140. The chances of a pull back towards 1.1850 or lower are high.

Red line - resistance

Green lines - bullish channel

EURUSD continues making higher highs and higher lows. Trend remains clearly bullish as long as price is above 1.2050. Breaking below 1.2050 will be the first sign of weakness. Bearish trend change will be confirmed if price breaks below 1.1993. In the 4 hour chart the RSI is already showing bearish divergence signs. In the Daily chart as shown above the RSI has still not reached overbought levels. At current levels I prefer to be neutral or protect longs by raising protective stops. I expect a reversal signal soon.