The coronavirus crisis has turned investor interest to the traditional safe haven of the Dollar putting a lot of pressure in EURUSD. With EURUSD making new multi month lows, we continue to observe a bullish divergence in the RSI.

EURUSD is breaking below the February lows. The sharp decline due to the COVID-19 epidemic affecting world wide economies is putting pressure on EURUSD. With Dollar bulls back in control once again I prefer to be neutral and cautious at current EURUSD levels. Trend is of course bearish but there are some warning signs for bears. The RSI divergence is one warning. It is not a reversal sign. Only a warning. Volatility has increased dramatically and traders need to be extra cautious.