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EUR/USD Price Analysis: Shows signs of life after three-day losing streak

  • EUR/USD is attempting a corrective bounce, having dropped for three straight trading days. 
  • Key intraday indicators are reporting a bullish divergence. 

EUR/USD is flashing green in Asia, having dropped for the third straight day on Monday. 

The currency pair is currently trading at 1.1025, representing marginal gains on the day. 

The single currency could rise further to the descending 5-day average at 1.1043, as the hourly chart is reporting a bullish divergence of the relative strength index (RSI). 

The  4-hour chart RSI has also created a bullish divergence (higher lows) and the MACD is printing higher lows below zero, indicating a weakening of downside momentum.

The case for a corrective bounce would weaken if the spot finds acceptance under Monday's low of 1.1009. That would invalidate the bullish RSI divergence seen on the hourly and 4-hour charts. 

4H chart

Trend: Corrective bounce

Technical levels

 

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