EUR/USD Price Analysis: Off 7-month highs after bullish daily close

EUR/USD printed a bullish daily close above the March 3 high on Thursday.
A key indicator is reporting overbought conditions, but the bulls remain undeterred.

Omkar Godbole FXStreet Contributor

EUR/USD is currently trading at 1.1223, representing marginal losses on the day, having hit a high of 1.1245 during the overnight trade. That was the highest level since Aug. 6, 2019.

Bullish setup on D1

The pair jumped 0.93% on Thursday and closed well above the March 3 high of 1.1213, establishing a fresh bullish higher high on the daily chart.

Thursday's gain also validated the single currency's defense of the all-important 200-day average at 1.11 observed on Wednesday and signaled a continuation of the rally from February's low of 1.0778.

The 14-day relative strength index has crossed into overbought territory above 70. The price chart, however, is showing no signs of buyer exhaustion.

All in all, the doors remain open for EUR/USD to extend gains toward the next major resistance lined up near 1.1282 (July 19, 2019 high).

A close under 1.1095 (Wednesday's low) is needed to invalidate the bullish setup. That level could be breached if the global equities pick up a strong bid and post solid gains for consecutive days, weakening the haven demand for the EUR.

Daily chart

Trend: Bullish

Technical levels

EUR/USD

Overview
Today last price	1.1222
Today Daily Change	-0.0006
Today Daily Change %	-0.05
Today daily open	1.1228

Trends
Daily SMA20	1.0937
Daily SMA50	1.1036
Daily SMA100	1.1061
Daily SMA200	1.11

Levels
Previous Daily High	1.123
Previous Daily Low	1.112
Previous Weekly High	1.1053
Previous Weekly Low	1.0805
Previous Monthly High	1.1089
Previous Monthly Low	1.0778
Daily Fibonacci 38.2%	1.1188
Daily Fibonacci 61.8%	1.1162
Daily Pivot Point S1	1.1155
Daily Pivot Point S2	1.1082
Daily Pivot Point S3	1.1045
Daily Pivot Point R1	1.1266
Daily Pivot Point R2	1.1303
Daily Pivot Point R3	1.1376

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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