VOT Research Desk
EUR/USD began to move upward, early on Thursday. The technical picture indicates that the pair still has more upside potential before being technically overbought.
The pair was last spotted trading over 1.0450. Month-end flows pushed the EUR/USD to slip under 1.0300 toward the end of the European session on Wednesday.
The pair put on a remarkable rebound and ended up making about 100 pip gains for the day as the US Dollar came under intense selling pressure later in the trading day.
EUR/USD Technical Analysis:
Despite Wednesday’s significant climb, the Relative Strength Index (RSI) indicator on the four-hour chart remains below 60, indicating that EUR/USD may continue to advance before staging a downward correction.
On the upside, 1.0500 (psychological level, multi-month high reached on November 28) and 1.0530 serve as temporary resistance before 1.0475 (static level), which acts as intermediate support (static level).
The first level of support is at 1.0400. (Psychological level, static level).
A four-hour close below that mark would indicate further losses approaching 1.0350 (the four-hour chart’s 50-period SMA) and 1.0300 (the chart’s 100-period SMA, a static level).