The EURUSD pair extended its gains during recent intraday trading, rising to test a short-term descending trendline, testing EMA50s resistance, making the current zone highly important in determining the next direction.

This rise came after a series of strong gains that pushed the relative strength indicators into exaggerated overbought levels compared to the pairs movement. This suggests the potential of a negative divergence forming, especially with the beginning of a bearish crossover on the indicator, signaling a rapid fading of the positive momentum surrounding the pair. This puts the recent gains at risk of a potential bearish reversal in the near term.