The EUR/USD RSI Divergence Deepened

As I thought it would in my last  EUR/USD assessment>>> , the pair formed another low, reaching 1.0493, but at the same time the RSI divergence on the M30 time frame deepened.

We can now see a RSI divergence on the longer H1 time frame and it made sense that the pair began a correction to the upside. I should also point out that the H1 RSI divergence has already reached its limit at 1.05774.

For the moment it is difficult to say whether there will be a new, lower low and whether that would be accompanied by a higher RSI low, but let me remind you that the divergence on the daily time frame>>>  reached one of its limits at 1.0744 as EUR/USD formed the pennant and even climbed above it and that we are still waiting for it to reach the rest of its limits, listed in the assessment from 9th February 2016.

In case the pair does continue moving to the upside, I think that in the short-term the first target will be around 1.0625 – 1.0650.

To the downside the target is around 1.0550 – 1.0500.