EUR/USD’s rally looks overstretched, according to the weekly RSI. The indicator is showing overbought conditions for the first time in 2.5 years. EUR/USD’s weekly chart relative strength index has crossed above 70 for the first time since January 2018. An above-70 reading represents overbought conditions. An above-70 or overbought reading on the RSI does not imply bearish reversal but merely indicates that the rally is overstretched. In other words, there has been a significant and consistent rally in a short period of time without notable pullbacks. As such, overbought levels on the RSI are often followed by consolidation or minor retracements. EUR/USD is already witnessing a consolidation. The pair carved out a big Doji candle in the first week of this month, indicating buyer exhaustion. Since then, the exchange rate has been restricted well within the Doji candle’s range of 1.1696 to 1.1916. A move below the lower end of the trading range could cause some buyers to exit the market, leading to a deeper decline to 1.1495 (March high). Alternatively, the high of 1.1916 is the level to beat for the bulls. Weekly chart Trend: Overbought, neutral Technical levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/CAD Price Analysis: Bulls look for entry beyond 1.3270/75 FX Street 2 years EUR/USD's rally looks overstretched, according to the weekly RSI. The indicator is showing overbought conditions for the first time in 2.5 years. EUR/USD’s weekly chart relative strength index has crossed above 70 for the first time since January 2018. An above-70 reading represents overbought conditions. An above-70 or overbought reading on the RSI does not imply bearish reversal but merely indicates that the rally is overstretched. In other words, there has been a significant and consistent rally in a short period of time without notable pullbacks. As such, overbought levels on the RSI are often followed by consolidation or minor retracements. … Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
