FX.co ★ EURUSD vulnerable to a pull back towards 1.0750.

Red lines- bullish channel

Blue lines- bearish divergence

EURUSD is trading around 1.0860 after recently making new highs at 1.0927. Trend remains bullish as price is making higher highs and higher lows while staying inside the upward sloping channel. Short-term oscillators suggest that we are at an overbought phase and a pull back towards 1.0750 is very possible. A pull back towards the lower channel boundary is justified and that is why we expect price to move towards that area of support. The RSI in the daily chart continues to provide bearish divergence signals, implying that an even bigger correction is possible. For now we focus on the 1.0750 target.