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The bullish divergence in EURUSD 4 hour is playing out. EURUSD is bouncing off the 1.12 level and we continue to expect prices to bounce higher specially if short-term resistance at 1.1250 is broken.
Red line - major resistance trend lineBlue lines - bullish divergence
Green line -support trend line
EURUSD has provided some important bullish divergence signs that was a warning for EURUSD bears as we noted in our previous analysis. EURUSD has the potential to rise towards 1.13-1.1340 area. Short-term trend is being challenged to change from bearish to bullish. Medium-term trend remains bearish as long as price is below 1.14. Confirmation of a medium-term trend change will come with a close above 1.1450. Short-term we expect price to bounce higher.
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