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The recent retreat from the highs (1.1257) looks like the necessary downside correction that may precede another leg up as Thursday’s 4-hour chart is showing the EUR/USD pair exited overbought conditions, according to FXStreet’s analyst Yohay Elam.

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Key quotes

“The Relative Strength Index on the 4-hour chart has dropped below 70, exiting overbought conditions. Momentum remains to the upside and the pair is trading well above the 50, 100, and 200 Simple Moving Averages.” 

“Resistance awaits at 1.1230, a stepping stone on the way up in recent days, followed by a recent peak of 1.1257. The next big level to watch is 1.1360.” 

“Support awaits at 1.1280, a support line in recent days, followed by 1.1150, a swing high from April, and also a separator of ranges.”