EUR/USD is posting gains today, trading up 0.3% on a day to 1.1437, while Wednesday’s 4-hour chart is showing the pair is at a critical juncture. Yohay Elam, an analyst at FXStreet, notes that EUR/USD after breaking above 1.1425 the pair can run toward levels not seen since March.
“EUR/USD is trading below an uptrend resistance line that has been accompanying it since early July. That line now converges with 1.1425 – the currency pair’s peak in early June. Breaking above this critical resistance line would open the door to the highest levels since March.”
“Momentum on the 4-hour chart is to the upside and EUR/USD is trading above the 50, 100, and 200 Simple Moving Averages. The Relative Strength Index is below 70 – thus outside overbought conditions.”
“Resistance above 1.1425 is at 1.1495, March’s peak, and then 1.1560.”
“Support awaits at 1.1375, a stepping stone on the way up, followed by 1.1350, a swing high from early in the month.”