21.05 - The change in sentiment cut off the EUR/USD's rally
- by George Solotarov
It's 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.
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.