FX.co ★ Technical analysis on EURUSD for May 18th, 2023.

Red lines- bearish channel

Blue line - bullish RSI divergence

Short-term trend is bearish in EURUSD. Price continues making lower lows and lower highs inside the red downward sloping channel. Price has reached our target area for the first pull back around 1.08. The RSI has started providing bullish divergence signals in the 4 hour chart. This is not a reversal signal. This is only a warning. Current market conditions justify a bounce higher maybe towards 1.0850-1.09 but we do not believe this is a tradeable bounce, as the market can go even deeper in oversold territory.