FX.co ★ EURUSD short-term overbought

EURUSD has made new higher highs at 1.1398 thus far with price reaching the equality target with respect to the first upward leg from 1.1107 to 1.1347. The RSI is at short-term overbought levels so a pull back is justified.

Blue lines - comparing two bullish moves

EURUSD has almost reached the level that will make the second upward move equal to the first. The RSI is overbought so a short-term pull back towards 1.1350 should not come as a surprise. The RSI has not given any topping sign nor a reversal sign. Trend remains bullish in short- and medium-term trend. The break out above the wedge pattern is a medium-term bullish signal implying we could see 1.17 and higher over the coming weeks. Support is at previous highs at 1.1350 and next at 1.13. Trend changes only with a break below 1.1180.