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The change in sentiment cut off the EUR/USD’s rally, which sent the world’s most popular currency pair to nearly 1.10 on Wednesday, a two-week high, but Thursday’s four-hour chart is pointing to the potential for resuming the rally, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“The Relative Strength Index on the four-hour chart has dropped below 70, exiting overbought conditions. That is a bullish sign that joins upside momentum. EUR/USD is trading above the 50, 100, and 200 Simple Moving Averages.” 

“Resistance awaits at 1.0975, a swing high earlier this week. It is followed by 1.10, the peak on Wednesday.” 

“Some support is at the daily low of 1.0950, and it is followed by 1.0920, a stepping stone on the way up.”