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17.09.202117:05 Forex Analysis & Reviews: EURUSD short-term bounce possible.

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EURUSD remains in a bearish trend making lower lows and lower highs. Price has reached our 1.1750 target after breaking below 1.18 and is moving lower. Price is trading below the 61.8% Fibonacci retracement. Bulls do not want to see price move much lower than this retracement level as the chances of a reversal will decrease.

Blue lines- bullish divergence

The RSI in the 4 hour chart is providing us with a bullish divergence. This is not a reversal signal, it is only a warning that bears should not be overconfident. A bounce higher is justified from current levels. Resistance is at 1.1790 and a break above this level will signal a bigger bounce is coming. If the RSI makes a new lower low then we should expect the down trend to continue and price to challenge the 1.17-1.1665 lows.

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