EUR/USD technical analysis: Bearish lower highs setup invalidated
|- EUR/USD has violated a bearish lower highs setup.
- Daily chart indicators suggest scope for an extension of the ongoing rally.
EUR/USD closed well above Sept. 13's high of 1.1110 on Thursday, invalidating the bearish lower highs setup.
The pair charted multiple lower highs and lower lows in the three months to Oct. 1.
The invalidation of the bearish lower highs is accompanied by an above-50 reading on the relative strength index (RSI) and the ascending 5- and 10-day moving averages (MA).
Further gains, therefore, looks likely but may be seen after a brief pullback as the RSI is reporting overbought conditions on the hourly and 4-hour charts.
AS of writing, the pair is sidelined around 1.1126, having hit a high of 1.1140 on Thursday.
Daily chart
Trend: Bullish
Technical levels
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