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EUR/USD Price Analysis: Bearish RSI divergence on D1

  • EUR/USD's daily chart indicator paints a bearish picture. 
  • The pair may revisit key support before resuming bull run from 1.16.

EUR/USD is currently trading in a sideways manner near 1.2243, having faced rejection above 1.23 in the previous two trading days.

The pair fell by over 0.6% on Thursday, confirming a bearish divergence of the 14-day Relative Strength Index. A bearish divergence occurs when an indicator forms lower highs, contradicting higher highs on the price chart, and often yields deeper pullbacks. 

The immediate support is seen at 1.2215 (Thursday's low), which, if breached, would open the doors to 1.2129 (Dec. 21 low). On the higher side, 1.2310 (Wednesday's high) is the level to beat for the bulls. 

Daily chart

Trend: Pullback likely

Technical levels

EUR/USD

Overview
Today last price1.2246
Today Daily Change0.0030
Today Daily Change %0.25
Today daily open1.2216
 
Trends
Daily SMA201.2185
Daily SMA501.1988
Daily SMA1001.1893
Daily SMA2001.1546
 
Levels
Previous Daily High1.2228
Previous Daily Low1.2214
Previous Weekly High1.231
Previous Weekly Low1.2181
Previous Monthly High1.231
Previous Monthly Low1.1924
Daily Fibonacci 38.2%1.2223
Daily Fibonacci 61.8%1.222
Daily Pivot Point S11.2211
Daily Pivot Point S21.2206
Daily Pivot Point S31.2198
Daily Pivot Point R11.2225
Daily Pivot Point R21.2233
Daily Pivot Point R31.2239

 

Author

Omkar Godbole

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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