EURUSD: Bullish wave is weakening

The EURUSD is a heavily traded currency pair in the foreign exchange market, and any change in its price direction can have a significant impact on traders’ positions. After experiencing a bullish wave, the price has now encountered a resistance level, which could be a sign that the upward momentum is losing steam. This resistance level may indicate that buyers are becoming less willing to buy the currency pair at its current price, or that sellers are becoming more willing to sell it. Moreover, the negative divergence signal from the RSI suggests that the price may face a bearish wave in the near future, which could further slow down upward momentum.

When traders see a negative divergence signal from the RSI, they tend to pay close attention because it is often an early indication of a potential trend reversal. The signal suggests that the RSI is not corroborating the higher highs of the price, which could indicate a weakening of the bullish trend. However, it is important to note that technical analysis is not foolproof, and traders must also consider other factors such as economic news, geopolitical events, and market sentiment to make informed trading decisions. As such, traders should closely monitor the price action and adjust their trading strategies accordingly to maximize their profits and minimize their losses.