EUR/USD Technical Analysis: EUR has eroded 4-month downtrend line

• The EUR closed above the trendline sloping downwards from the April 19 high and July 31 high on Friday, strengthening the bull grip.
• The EUR/USD clocked a 25-day high of 1.1654 in Asia and is now trading at 1.1627.
• The trendline support (former resistance) could be put to test before further rally unfolds, as the 14-hour relative strength index (RSI) is reporting overbought conditions.

Daily Chart

Spot Rate: 1.1627

Daily High: 1.1654

Daily Low: 1.1614

Trend: Bullish

Resistance

R1: 1.1654 (session highs)

R2: 1.17 (psychological hurdle)

R3: 1.1754 (5-month moving average)

Support

S1: 1.1610 (50-day moving average)

S2: 1.1591 (5-day moving average)

S3: 1.1578 (50-hour moving average)