Euro Forecast: EUR/USD Clears 2024 High to Push RSI into Overbought Zone
EUR/USD bounces back ahead of the monthly low (1.0778) to clear the 2024 high (1.1214).
Written by
David Song
Strategist
Euro Outlook: EUR/USD
EUR/USD bounces back ahead of the monthly low (1.0778) to clear the 2024 high (1.1214), with the rise in the exchange rate pushing the Relative Strength Index (RSI) back into overbought territory.
Euro Forecast: EUR/USD Clears 2024 High to Push RSI into Overbought Zone
EUR/USD rallies to a fresh yearly high (1.1242) after completing a cup-and-handle formation earlier this month, and the move above 70 in the RSI is likely to be accompanied by a further advance in the exchange rate like the price action from earlier this year.
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In turn, the Euro may continue to appreciate against its US counterpart as EUR/USD carves a series of higher highs and lows, and the exchange rate may attempt to test the 2023 high (1.1276) as it pushes above the opening range for April.
With that said, the rally in EUR/USD may persist as the cup-and-handle formation seems to be unfolding, but the RSI may show the bullish momentum abating should it struggle to hold above 70.
EUR/USD Chart – Daily
Chart Prepared by David Song, Senior Strategist; EUR/USD on TradingView
- EUR/USD pushes above the monthly opening range to approach the 2023 high (1.1276), with a break/close above the 1.1260 (61.8% Fibonacci extension) to 1.1280 (61.8% Fibonacci retracement) region opening up the 1.1390 (78.6% Fibonacci extension) to 1.1440 (61.8% Fibonacci extension) zone.
- Next area of interest comes in around 1.1560 (100% Fibonacci extension), but EUR/USD may struggle to extend the recent series of higher highs and lows should it fail to test the 2023 high (1.1276).
- Need a move/close below 1.1170 (50% Fibonacci retracement) to bring the 1.1070 (23.6% Fibonacci retracement) to 1.1090 (38.2% Fibonacci extension) zone back on the radar, with the next area of interest coming in around 1.0940 (50% Fibonacci retracement) to 1.0960 (23.6% Fibonacci extension).
Additional Market Outlooks
GBP/USD Reverses Ahead of March Low to Stage Three-Day Rally
USD/JPY Eyes October Low as China Responds to Trump Tariffs
Canadian Dollar Forecast: USD/CAD Rebound Fizzles amid Trump Tariff Negotiations
AUD/USD Selloff Persists as US Threatens Additional 50% Tariff for China
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
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