EURUSD Bearish Divergence

Jul 31, 2017

Price bounces from 1.17500 level. Bearish divergence gives a signal about possible trend reversal. RSI confirms price reversal from the resistance level. MACD confirms downward movement. ADX line of DMI indicator falls and it does not support strong upward movement. Based on these signals we should expect downward movement to MA50 and 1.16000 support level. If the market drops below MA20, it will be possible to open short trades with stop orders above 1.17800 level. Profit target must be at the support level. If the market breaks the previous swing high, it will be confirmation for continuation of the main up trend. Don't forget that any trend reversal signals are less reliable than signals in the direction of the main trend.