The recent decline from highs (1.1257) looks like the necessary downward correction that could precede a new milestone, as Thursday’s 4-hour chart shows that the EUR / USD pair has exited overbought conditions, according to FXStreet analyst Yohay Elam.
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“The relative strength index on the 4-hour chart fell below 70, coming out of the overbought conditions. Momentum remains on the rise and the pair is trading well above the moving averages of 50, 100 and 200. ”
“Resistance is waiting at 1.1230, a springboard up in recent days, followed by a recent peak at 1.1257. The next big level to watch is 1.1360. ”
“Support is waiting at 1.1280, a support line in recent days, followed by 1.1150, a high April swing, and also a range separator.”