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EURUSD price was even below 1.18 this week but bulls came back stronger and managed to recapture the 1.19 level. A weekly close tomorrow above 1.19 would be a good sign for next week, despite the warning signs by the RSI.
Blue lines - bearish divergenceAlthough EURUSD price is making new short-term higher highs, the RSI is not following. The RSI has a made another lower high providing us with another bearish divergence. Support is at 1.1840 and as long as price is above this level, short-term trend remains bullish. As we explained in previous posts, 1.19 is major resistance for EURUSD and a weekly break above it would be a bullish flag break out as we explained in our last analysis.
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