EURUSD - Trend Reversal Signals

The price bounces from 1.12000 support level. RSI confirms the price reversal and MACD histogram supports the further upward movement. DMI is still bearish but ADX line falls. It tells us that sellers are not so strong for pushing the market lower.

At the same time, the market gives us two trend reversal signals. They are a double bottom and a bullish divergence. The price can move upward, and the 1st resistance zone will be between 1.13000 and 1.13500 levels. This zone is also supported by resistance lines like the downtrend line and SMA50, SMA100.

The price action in this resistance zone will show further market movements. If the price bounces from this resistance, we should be ready to see the falling to 1.12000 support again. If the price can break the resistance zone and move above the downtrend line, the trend reversal will be confirmed.

Short trades can be opened based on reversal signals from the resistance zone. Long trades can be opened based on breakout signals above the resistance zone and using reversal signals from 1.12000 support.