The recent rise in EURUSD was rejected at highs of 1.1365 reached on August 18 and since then prices eased lower to test the key 1.1300 level. The upside move from 1.0951 (June 24 low) lost momentum as RSI reached near overbought levels around 70 and then turned back down.
Immediate support lies at the August 22 low of 1.1270, which also coincides with the 23.6% Fibonacci level (retracement of 1.0951 to 1.1365).
The medium term outlook for EURUSD is still considered bullish as long as the market remains above the 100-day moving average which is now a major support level on the downside. RSI is still in bullish territory above 50.
A break below 1.1224 support (100-day moving average) would give an indication that a short-term top is in place at 1.1365 and would diminish the prospects for an upside move to retest this high.
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