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The US Dollar is seeing a near-term correction higher. Serious divergence of the daily RSI reflects the EUR/USD pair is losing momentum, as Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes.

Scope for the 1.2349 2021 high while above uptrend at 1.2162

“EUR/USD’s new high has not been confirmed by the daily RSI, which is now seeing major divergence. We have partially covered our long positions and would tighten up stops for the rest.”  

“Trendline support lies at 1.2162 and while above here scope remains for a test of 1.2349, the 2021 high. However we look for this to hold for now.”

“Our longer-term target is 1.2556/1.2619, the 2018 high, the 200 month moving average and the 55-quarter ma.”