- EUR / USD takes the auction close to the highest in 11 weeks.
- Overbought RSI, the key short term resistance line could trigger withdrawal from the pair.
- The breakout of the weekly support line highlights 1.1000 rest points.
- The summits of mid-March attract the bulls during the new rise.
EUR / USD climbs back to 1.1197, up 0.25% on a day, in the middle of Wednesday’s Asian session. That said, the pair is trading near the highest levels since March 16, while crossing the previous day’s high close to 1.1196, against a backdrop of overbought.
As a result, the odds of removing the quote from a stretched rising trend line from May 13, at 1.1200, seem brighter.
However, a sustained north race beyond 1.1200 will propel the quote to the peak in mid-March around 1.1237.
On the downside, a short-term support line around 1.1155 could call into question the withdrawal movements, a break of which could not hesitate to review the summit of May 21 around 1.1000.
Additionally, a 200 bar SMA level of 1.0900 may appeal to bears during the pair’s drop after 1.1000.
Four-hour EUR / USD chart
Trend: expected decline