EUR/USD: Bulls keep on powering through for now [Video]

Richard Perry Independent Analyst

EUR/USD

There have been early signs of exhaustion in the rally, but the EUR/USD bulls keep on powering through for now. It is difficult to see the dollar regaining much ground whilst Treasury yields continue to plunge new depths. EUR/USD is back to a key barrier, with the resistance around $1.1240 being tested. An incredible move considering just two weeks ago the market was deeply bearishly configured around the multi-year low of $1.0775. A tick back from an early session high of $1.1248 has been seen today with the RSI again over 70. As we found out in mid-February, the traditional limits to the RSI on EUR/USD (between 30 and 70) are being stretched and should not necessarily be seen as limits at all. Subsequently, a closing breakout above $1.1240 today could open the next phase of buying towards $1.1410. The hourly chart shows initial support at $1.1185/$1.1210 (recent old highs), which will gauge the strength today. Hourly MACD turning over give a sense that the market is paying attention to $1.1240, so care does need to be taken with reversal signals. However, until $1.1095 is broken there would not be any real confirmed corrective signal.

Author

Richard Perry

Independent Analyst

Richard Perry, Independent Market Analyst, has over 20 years of experience working in financial markets in London.

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