EUR/USD Technical Analysis: Up move seen as corrective only

• The pair is moving higher and tested once again daily highs beyond 1.1400 the figure earlier in the session, although the bullish attempt run out of legs in the 1.1420 region.
• The pair’s up move comes along some renewed weakness around the buck on the pick up in the risk-on trade and the extended oversold condition of EUR/USD.
• The bearish view around the pair remains unchanged, however, and a break below recent lows in the 1.1300 handle should open the door for a visit to 1.1188 (61.8% Fibo retracement of the 2017-2018 up move) ahead of 1.1118 (monthly low June 2017).
• The ongoing up move is seen as corrective only and it is expected to meet resistance at 1.1457 (10-day SMA) seconded by 1.1567 (21-day SMA), all ahead of the more relevant hurdle around 1.1630, where sit last week’s tops, the base of the daily cloud and the bottom line of the pennant formation in the daily chart.

EUR/USD daily chart

Daily high: 1.1420

Daily low: 1.1365

Support Levels

S1: 1.1339

S2: 1.1300

S3: 1.1265

Resistance Levels

R1: 1.1412

R2: 1.1448

R3: 1.1486