FX.co ★ Short-term technical analysis on EURUSD for April 7, 2022.

EURUSD remains inside the medium-term bearish channel and short-term trend is also bearish. Price continues making lower lows and lower highs. The RSI has just started providing bullish divergence signals in the 4 hour chart. This is not a reversal signal but a warning to bears.

Green lines- bullish divergence

Despite the new lower low in price, the RSI made a higher low and is turning upwards from oversold levels. This is a warning to bears to be cautious as current market conditions justify a reversal in price to the upside. Let's also not forget what we said in yesterday's analysis. EURUSD is approaching the long-term weekly support trend line at 1.0850 area.