Regular Bullish Divergence EUR/AUD

D

DannyBly1

Regular divergence between price and a momentum oscillator such as RSI indicate a possible trend reversal.

The scenario of price making lower lows along with the oscillator is making higher lows is described as regular bullish divergence - suggesting a bullish trend reversal.

The daily charts of EUR/AUD and USD/MXN have recently exhibited regular bullish divergence:

euraud.jpg


and

usdmxn.jpg
 
Tough call from a fundamental perspective. I wouldn't go long anything Euro right about now, but I also wouldn't give too much credit to the Aussie. Though I think the Euro is far more overvalued. So more down moves would be expected.
 
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