Regular Bullish Divergence EUR/AUD

Discussion in 'Forex' started by DannyBly1, Jun 23, 2008.

  1. 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:



  2. 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.