- June 22, 2023
- Posted By: capadmin
- Category: Market News
Monitoring price action crucial
The EUR/USD currency pair has been displaying a strong bullish trend, with prices steadily climbing over recent weeks. However, as the price line approaches the 1.10100 level, which coincides with the 0.618 Fibonacci retracement of the previous bearish wave, caution is warranted. This resistance level holds significant importance as it has the potential to halt the upward movement. Additionally, the Relative Strength Index (RSI) is issuing a negative divergence signal, suggesting a potential trend reversal.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The EUR/USD currency pair has encountered a significant obstacle in its upward movement, as the price line has approached a strong resistance level around 1.10100. This level corresponds to the 0.618 Fibonacci retracement level, calculated from the previous bearish wave. The presence of this resistance level suggests that market participants are closely monitoring the price action at this point. Moreover, the Relative Strength Index (RSI) is signaling a negative divergence, further adding to the possibility of a potential trend reversal. Negative divergence occurs when the price makes higher highs, but the RSI fails to follow suit and instead forms lower highs. This disparity between price and RSI could indicate a weakening bullish momentum, potentially leading to a reversal in the trend. Traders and investors should closely monitor the price action and any confirmation signals that may arise, as a trend reversal appears to be highly probable given the confluence of resistance and the RSI’s negative divergence.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.