EUR/USD is forming an RSI (14) Bearish Divergence at 4H time frame signifying a strong selling opportunity. RSI Bearing Divergence happens when price action is getting higher highs but the RSI gets lower lows. RSI Divergences do not happen very frequently but are very effective in estimating the near future price movements.
RSI Bearish Divergence is most effective when the price action is on an uptrend and seeing a divergence may signify that the current trend may be coming to an end. See EUR/USD 4H RSI Bearish Divergence chart pattern below:
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Here’s another indicator stating a possible downtrend for this currency pair. Agimat 2020 is an effective indicator that flags trend reversals. I personally and have found relative success with it. See the below chart generated by this indicator.
Agimat indicator generated a blue arrow peak, a yellow confirmation box, and a Maxwell equation value of below 0 – all these points to a possible downtrend. Click here to learn more about Agimat Trading System. Click on the “Previous Agimat FX Versions” on the top right corner of the website then look for “Agimat FX 2020”. This is the system that I personally use that I find to be a very effective additional tool for my forex trading. Please follow the YouTube videos on how to trade Agimat FX 2020 included in the website and email upon registration.
As always take this analysis with a grain of salt. This is not a piece of investment advice and no one can predict with absolute certainty where prices will go. We will go back to this article a few days from now to see what happens.
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Update June 18, 2020 – As of today, the EUR/USD has indeed gone down but only by approximately 50 pips. The RSI Bearish Divergence is still intact but getting weaker and weaker. There seems to be a new bearish pattern, a head and shoulders pattern that is forming with this pair. We will check again in a few days to see if this pattern materializes. Trade wisely!
Update June 21, 2020 (Weekend) – The EUR/USD has indeed gone down by approximately 108 pips since the time this article was published. See EUR/USD chart below.
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