FX.co ★ EURUSD forming a downward sloping wedge pattern.

EURUSD remains in a bearish trend making lower lows and lower highs. Price is now at 1.12 and about to move even lower, but the RSI is not following. This is not a reversal signal but something that should make bears more cautious as down trend is weakening.

Red lines- resistance

As long as price is below the red downward sloping trend line, trend will remain bearish. The red resistance trend line is now at 1.1265. There is not much to say about EURUSD. Things are very clear. Trend clearly bearish, but traders should be cautious. The wedge pattern that is being formed is usually found near the end of such movements. Breaking above 1.1265 will be our reversal signal. Until then, bears remain in control of the trend.