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Red lines - wedge pattern
Blue line- bearish RSI divergence
EURUSD remains in a bullish trend as price continues making higher highs and higher lows. However recent price action in EURUSD has given us a warning. Price has formed an upward sloping wedge pattern. This is usually found near the end of trends. At the same time the RSI is diverging. Support is at the lower wedge boundary at 1.0490. A four hour candlestick close below this level would be a bearish signal. A short-term bearish signal could bring price back towards 1.01. Traders need to be very cautious.
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