03.06 - EUR/USD: Thursday's 4-hour chart is pointing to overbought conditions
- by George Solotarov
Nonetheless, that is the only sign suggesting a temporary speed bump with resistance seen at 1.1240. UOB also thinks the pair is ready for a test of the 1.1235 level. The Relative Strength Index on the 4-hour chart is above 70 – indicating overbought conditions and suggesting a drop. Nevertheless, EUR/USD broke above the uptrend channel and trades above the 50, 100, and 200 Simple Moving Averages, suggesting a broader uptrend.
Beyond the daily high of 1.1215, the next cap is at 1.1240, a swing high from March. It is followed only by 1.1360, a stepping stone on the way down back then. Some support is at 1.1165, the daily low, followed closely by 1.1150, a swing high in March.