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Red lines- bearish divergence signals
Blue lines - Fibonacci retracement levels
EURUSD is trading around 1.0903 making new highs for the current week. Price has so far retraced more than 50% of the entire decline from 1.1276. The recent higher highs in price were not followed by higher highs in the RSI. The RSI provided bearish divergence signals. This is not a reversal signal but only a warning. In the 4 hour chart a pull back is justified. Price can make a pull back towards 1.08-1.0750 area where we find short-term support. Trend remains conrolled by bulls.
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