03.08.201922:50 Forex Analysis & Reviews: EURUSD major long-term bullish divergence remains

Long-term review

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EURUSD has reached our downside targets after breaking below 1.12. EURUSD has broken below 1.11 and has reached 1.1050-1.10 area which was our target. EURUSD remains trapped inside the long-term bullish wedge that I expect to break it to the upside.

Red lines - bullish divergence

Black line -upper wedge boundary

EURUSD has reached the downward sloping red trend line touching the lows from August 2018. EURUSD gave us a sell signal after breaking below 1.12 and has reached our target of 1.1050-1.10. Now EURUSD could bounce towards 1.1250-1.1275 but price would remain inside the long-term downward sloping wedge pattern. Only a break out above the wedge and especially above 1.1420 would be a reversal signal of the bearish trend. Price continues to make lower lows and lower highs despite the recent try above 1.14. Inability to hold above it has lead to the new lows. The bullish RSI divergence on a weekly basis remains and provides a warning to bears not to get overconfident.

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