- The 200-HMA, 38.2% Fibonacci retracement, and 3-week old descending trend-line together highlight the importance of 1.1190/95 resistance-area.
- Overbought RSI levels add to the chances of a pullback from the key resistance-region.
Despite its latest recovery, the EUR/USD pair is yet to clear short-term important resistance-zone while oversold RSI indicates chances of its pullback as the quote seesaws near 1.1180 ahead of the European markets’ open on Monday.
The 1.1190/95 confluence comprising 200-bar moving average (4H 200MA), 38.2% Fibonacci retracement of April to May month declines and a three-week-old descending trend-line becomes immediate resistance for the pair to clear.
However, overbought levels of 14-bar relative strength index (RSI) favor profit-booking moves targeting 23.6% Fibonacci retracement level of 1.1158.
Should there be additional weakness past-1.1158, 1.1125 and recent low near 1.1105 could become sellers’ favorites.
On the contrary, an upside clearance of 1.1195 may trigger the price rise towards 50% Fibonacci retracement level of 1.1217 whereas 61.8% Fibonacci retracement near 1.1243 and a horizontal-line near 1.1265 including highs marked since April 22 may please bulls then after.
EUR/USD 4-Hour chart
Trend: Pullback expected
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