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  • EUR/USD has pushed another 0.21% higher on Monday but it could have been worse for the dollar.
  • There has been a rejection at a previous high near 1.1965.

EUR/USD 1-hour chart

It seems the USD capitulation is not over just yet as the greenback sold off again on Monday. EUR/USD had been showing signs of strength before the bulls hit a brick wall at the previous high from 18th August at 1.1965. Later in the week, there is potentially more volatility to come as non-farm payrolls are back along with a whole host of PMI’s. 

Looking at the chart now and it easy to see where the bulls met some resistance. Now the price has pulled back over 30 pips and the next support is some way down at the red line close to 1.1880. This does not meed the bulls have given up on taking out the high point. If the level is broken the bull trend is back on track. 

The indicators are showing a mixed picture. The Relative Strength Index has a divergence pattern. This is when the price is making higher highs but the indicator makes a lower high. It is traditionally a bearish pattern and can indicate upside momentum is wearing thin. The MACD histogram is dipping into the red but the signal lines are way above the midpoint and this is considered bullish. 

The chart is still pretty much a bullish one and the bulls could just be pausing for breath before mounting another challenge to break the recent highs. Over the week there are many catalysts and the level could be taken out. 

EUR/USD making highs

Additional levels

 

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