EUR/USD may continue correcting higher – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, gives the technical outlook for EUR/USD, noting that the pair might continue correcting higher and only below 1.0550 will resume bearish potential.

Key Quotes

“From a technical perspective, the 1 hour chart shows that the price advances above its 20 SMA, now offering dynamic support in the 1.0550 price zone, whist the sharp intraday advance has left the Momentum indicator exhausted to the upside in overbought levels.”

“The RSI indicator in the same time frame is also losing upward potential but holding above 50.”

“In the 4 hours chart the price retraces from a strongly bearish 20 SMA, a few pips above the mentioned daily high, whilst the indicators are turning back south in negative territory, after erasing the extreme oversold readings reached alongside with the mentioned multi-year low.”

“The pair may continue correcting higher, but the dominant bearish trend will prevail in the longer run.”

“Short term, the pair needs to break below the 1.0550 support area to resume the bearish potential, back to challenge the critical 1.0500 figure.”

“Support levels: 1.0590 1.0550 1.0510”

“Resistance levels: 1.0640 1.0685 1.0710”