We talked about the major RSI divergence in our early analysis on January 8. EURUSD imitated the late summer-early autumn moves so far. In September, after the divergence, and broken of the bullish channel, we saw a hard fall, just like the last few days. After that fall, RSI fell just under the downward channel and formed an upward trend from there. At the same time, EURUSD formed a short-term slightly bullish channel.
If the mimicking continues, the price may form the same kind of channel for a while, but of course, expecting a lot of the same thing from the markets maybe a little too much these days. At any rate, the 1.20 support level will be the deciding factor for the direction of movement in the medium-term.
