FX.co ★ Short-term technical analysis of EURUSD for May 28, 2020

EURUSD is pushing once again above the key short-term horizontal resistance of 1.10-1.1020. Price is now trading at 1.1036 and a daily close above the resistance would be a bullish sign. However the RSI in the 4 hour chart warns bulls to be cautious.

Green rectangle- horizontal support

Red line - long-term resistance

EURUSD is moving above the green resistance area where it got rejected yesterday. Price is making higher highs but in the 4 hour chart the RSI does not make new highs. The RSI is making lower highs providing us with a bearish divergence signal. This is an important warning not to be ignored. Support is now at 1.10 and inability to hold above it will be a bearish sign. If the RSI breaks above the black downward sloping resistance trend line then we will have another bullish sign. This could lead to a move towards 1.11. We need to keep a close eye on price action.