FX.co ★ Technical analysis on EURUSD for May 4th, 2023.

Blue lines- bullish channel

Red lines- bearish RSI divergence

EURUSD is trading around 1.1072 making new short-term higher highs. Despite the recent pull back, bulls managed to respect key support level of 1.09-1.0950. Price remains inside the medium-term upward sloping channel, but the bearish RSI divergence remains. The bearish divergence is only a warning and not a reversal signal. Recent lows at 1.0942 is key support level. Bulls need to continue to defend it. A break below 1.0942 will open the way for a bigger pull back towards the lower channel boundary. Upside potential is limited according to the RSI.