Mildly bid in Asia with bullish divergence of 4H RSI, re-test of 1.1250 likely

  


EUR/USD is currently trading at 1.1222, representing a 0.20 percent gain on the day, having clocked a low of 1.1184 yesterday.

The recovery could be extended further to 1.1250 as the relative strength index (RSI) on the 4-hour chart has produced higher lows (bullish divergence) as opposed to lower lows on price.

The long-tail attached to the previous day’s candle (hammer) also indicates bearish exhaustion and scope for recovery rally.

4-hour chart

Trend: Corrective bounce likely

 



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