EUR rallied to close higher on Tuesday but faces key over head resistance. We are wary of the 1.3966/1.4000 levels. We think the pair might not sustain a break above those levels if seen.
In case this occurs expect further upside to happen towards the 1.4050 level and then the 1.4100 level. Its daily RSI is bullish and pointing higher suggesting further strength.
Conversely, support lies at the 1.3900 level where a break will aim at the 1.3871 level. Further down, support comes in at the 1.3800 level where we may see a respite. But if breached it will target the 1.3737 level followed by the 1.3676 level. All in all, EUR remains biased to the upside in the long term but faces corrective pullback risk.
Guest post by FX Tech Strategy
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