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  • EUR/USD sticks to the rangebound theme above 1.2100.
  • Overbought conditions still favour a correction in the near-term.

EUR/USD reverses three consecutive daily pullbacks and returns to the area above the 1.2100 yardstick on Wednesday.

While further consolidation remains on the cards, the current overbought conditions open the door to potential knee-jerk in the next sessions. Against this, the loss of recent weekly lows near 1.2080 could pave the way for a deeper retracement to the 1.2000 neighbourhood.

Looking at the broader scenario, the constructive outlook in EUR/USD is forecast to remain unchanged above the critical 200-day SMA, today at 1.1446. The 200-week SMA near 1.1440 also reinforces this view.

EUR/USD daily chart