Friday, February 16, 2018

The EUR/USD RSI Divergence Is Deepening

Yesterday the EUR/USD pair continued moving north throughout the day and it even reached a new local high at 1.25556 which is two pips less than the local high from 5th January 2018 (at 1.25375).

Regardless, the RSI on the D1 time frame is signaling for a possible depreciation. If the pair reaches the limit of the divergence it could fall to 1.2100 – 1.2090.

There are mere hours left until the end of the trading week and the way the D1 bar closes could give us another confirmation for the possible depreciation.

The expected movement is corrective and it should be part of the fourth wave >>>  before the pair renews its rally for the final fifth wave.

This scenario will be invalidated in case RSI breaks out above the red line connecting the highs of the divergence.