EURUSD RSI Bullish Divergence but 4H MA50 is the key

EURUSD has been on a downtrend since the September 03 Double Top on the 1.19100 Resistance. The price action has been below (never had a 4H candle closing above) the 4H MA50 (blue trend-line) since September 07 and the 4H MA200 (orange trend-line) since September 16.

Unless the pair closes a 4H candle above the 4H MA50, the trend remains bearish but recently the RSI has been on a Bullish Divergence as it is trading on Higher Lows as opposed to the price's Lower Lows.

Technically if the price closes a 4H candle above the MA50, then the short-term target would be 1.16400 being the most recent Lower High (Resistance 1). Closing above the Resistance 1, opens the way to the 4H MA200 which is approaching the 0.5 Fibonacci retracement level. Similary (for the longer-term) closing a 4H candle above the MA200, sets a target on the 1.19100 Resistance.



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