EURUSD continues to trade in a short-term bullish trend after breaking above 1.1230 and in a medium-term bearish trend as long as price is below 1.1350-1.14. Today we start the day with a strong opening as EURUSD is making new short-term highs.
Red lines - bullish divergence
Black line - major resistance
EURUSD is mostly moving sideways with a negative slope since last summer when the bullish divergence signs started. Divergence is just a warning but not a reversal sign. EURUSD has been trading close and closer to the major 61.8% Fibonacci retracement of the entire 2016-2018 rally. Price has formed a downward sloping wedge pattern. Major resistance remains at 1.14 and as long as price is below that level, medium-term trend will remain bearish. There are many chances of approaching the upper wedge boundary around 1.1370-1.1360 as short-term trend is bullish and as we continue to see price respect the short-term support at 1.1250.The material has been provided by InstaForex Company - www.instaforex.com