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Euro nears break above 1.20 while Tuesday’s 4-hour chart is pointing to mildly overbought conditions, and the daily chart shows the next levels to watch with support seen at 1.1965 and psychological resistance at 1.20, FXStreet’s analyst Yohay Elam reports.

Key quotes

“EUR/USD is benefiting from upside momentum on the 4-hour chart and is trading above the 50, 100, and 200 Simple Moving Averages. On the other hand, the Relative Strength Index is around 70 – indicating overbought conditions.” 

“Support is at 1.1965, the mid-August peak, and it is followed by 1.1930, a separator of ranges. Further down, 1.1880 provided some support and a critical line to watch is 1.1850 – which was a stubborn cap and also where the 50 SMA hits the price.”

“Clear resistance is at 1.20 – a psychologically level that also held EUR/USD back in 2018. To look for higher levels, the daily chart comes handy.  The next level to watch is 1.2090, which capped the currency pair in late 2017. It is followed by 1.2160, a support line from early 2018. The next level to watch is 1.2210, a support line from later in 2018 when EUR/USD traded at higher ground.” 

“The RSI on the daily chart is below 70, allowing for more rises.”

 

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