Technical Analysis – EUR/USD retreats after hitting 3-month high

eur-usdEURUSD has been in an upside tendency since November 4, recording a fresh three-month peak of 1.1940 earlier today. According to the technical indicators, the RSI is holding near the 70 level but is flattening, while the stochastic posted a bearish crossover within its %K and %D lines in the overbought territory.

Should the pair strengthen its positive momentum, the next resistance could come around the 1.2010 barrier, registered on September 1. More advances could take the pair until the inside swing low of 1.2160, achieved on February 25.

On the other hand, a downside reversal could lead the market towards the next support at 1.1880 around the 20- and 40-period simple moving averages (SMAs). Below that, the 23.6% Fibonacci retracement level of the up leg from 1.1600 to 1.1940 at 1.1860 is coming next before touching the Ichimoku cloud and the 38.2% Fibonacci of 1.1810.

Summarizing, EURUSD is bullish in the short-term, though, in the medium-term, the outlook remains neutral since prices hold within 1.1620-1.1940.

Origin: XM

 

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