EURUSD DIVERGENCE + APPROACHING KEY REVERSAL POINT

23 apr 2014

The EURUSD seems to be forming a strong bearish divergence with both the MACD and the RSI. I believe this divergence will reverse after it reaches the 1.3965 - 1.4000 price range. Technicals are signaling further continuation to the upside after the bounce off the 38% retracement as well as a bounce off a new support lvl (1.3820 - 1.3780) which was previously was a strong range of resistance. The chart also appears to be forming a rising wedge which I think will turn into a bear breakout after price reaches 1.4000 or the 1.3965 multiyear high and reverse or possibly sooner depending on next weeks fundamental releases.