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  • EUR/USD quickly leaves behind Wednesday’s moderate drop.
  • Focus now is on recent tops around 1.2250 (May 19).

EUR/USD resumes the upside and retakes the 1.2200 area following Wednesday’s pullback from 4-month peaks near 1.2250.

The buying bias remains well and sound for the time being. Against this backdrop, a surpass of the 1.2250 region should allow for a probable assault to the YTD peaks in the 1.2350 area (January 6).

The constructive stance on EUR/USD is forecast to remain intact as long as it trades above the 200-day SMA, today at 1.1960.

Of note, however, is that the daily RSI still did not confirm the recent peaks, which could be indicative of a bearish divergence and therefore a prelude to a corrective move in the short-term.

EUR/USD daily chart

 

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