The EUR/USD rallied yesterday after briefing cracking the support factors around 1.2240. It came out during the 7/31 Asian and European session, taking the EUR/USD to the 1.23-1.2330 resistance area noted in the previous EUR/USD update. So far, after the US stock market opened, we are observing some indecisive volatility, with a rejection at 1.2320, but no follow through yet to the downside.
The 1H chart shows the RSI at 60. A break above shows that the bulls are still in control of the momentum, and suggests a push to test the 1.24 handle. A market that remains in consolidation tends to keep the RSI reading between 40 and 60, meaning we should see some resistance in the near-term as the RSI is at 60 and price it testing the near-term resistance area.
An ABC correction scenario to the downside has a swing projection toward 1.2165 if it swings from 1.2330. Note the 61.8% retracement mark at 1.2175, as well as the 1.22 handle which is also where the 200-hour SMA resides.