Search ForexCrunch
  • EUR/USD keeps targeting the 1.2200 mark in the (very) near-term.
  • The pair’s overbought condition could sponsor a knee-jerk.

EUR/USD remains bid and extends the rally to the vicinity of the 1.2200 mark at the end of the week, levels last traded back in April 2018.

The positive stance in EUR/USD remains unchanged and allows for the continuation of the uptrend in the near-term at least. That said, a probable move to 1.2200 stays well on the table. However, the current overbought conditions (RSI at 82.0) also allow for a corrective, albeit short-lived, downside.

A surpass of 1.2200 should shift the focus to 1.2413 (April 2018 high) ahead of 1.2476 (March 2018 high). Further north emerges the more relevant barrier at the 2018 high in the mid-1.2500s.

Looking at the broader scenario, extra gains in EUR/USD are likely while above the critical 200-day SMA, today at 1.1432. The 200-week SMA at 1.1437 also reinforces this view.

EUR/USD daily chart