EUR/USD has been bullish throughout 2017. So far, there is no sign of a reversal. The only thing we can say is that there is a 3-point divergence between price and the RSI, which signals a period of consolidation ahead. EUR/USD Daily Chart(click to enlarge)Diagonal Triangle:- The daily chart shows a bullish EUR/USD that is still making higher highs and higher lows.- The bearish divergence reflects a slowing of the uptrend.- Also, we have what some chartists call a diagonal triangle, which can be interpreted as a sign of consolidaiton or bearish correction ahead. Downside:- Because the prevailing trend is bullish, we should limit the bearish expectation. - We might want to limit it to 1.16. - Also, a break below 1.18 would improve the chance that this diagonal triangle is indeed complete, and a bearish correction is pending. - Traders who want to fade EUR/USD might want to see a break below 1.18 and then then fade a subsequent pullback towards 1.19. Reward to Risk Consideration:- Let's saw we have an entry at 1.90 and a stop at 1.2060 (above the previous high). Let's say the targets are 1.16 and. - This would be a risk of 160 pips and a potential reward of 300 pips. While this is not the best reward to risk, it does allow for the scenario where price does make another high before correcting down towards 1.16. - Consider a tighter stop like 1.1960. This is a great reward to risk, but the chance that market might hit the stop first before a correction materializes increases.