EUR/USD technical analysis: Extending longest daily winning streak since March

EUR/USD rose for the fourth straight day on Thursday.
Daily chart favors an extension of the long winning run since March.
A minor pullback may precede further gains toward 1.1448.

Omkar Godbole FXStreet Contributor

EUR/USD closed higher for the fourth consecutive day on Monday to register its longest daily winning streak since March 20.

The pair gained 0.26 percent on Monday, having found acceptance above the 200-day moving average on Friday.

As of writing, EUR/USD is trading at 1.1403, having hit a fresh three-month high of 1.1403 soon before press time.

With technical charts biased bullish, the pair is looking to extend the four-day winning run.

The currency pair closed well above the 200-day moving average on Friday, activating twin bullish cues of higher low, higher high pattern and an inverse head-and-shoulders breakout.

Further, the 5- and 10-day moving averages are beginning to trend north in favor of the bulls. However, the relative strength index on the hourly and 4-hour charts is reporting overbought conditions with an above-70 print.

As a result, EUR/USD may consolidate around 1.14 or could see a minor drop to 1.1370 before rising further toward resistances lined up at 1.1448 (Mar 20 high) and 1.1514 (Jan. 31 high).

On the downside, key levels to watch out for are 1.1349 (200-day MA), 1.1347 (June 7 high), and 1.13 (psychological support)

Daily chart

Trend: Bullish

Pivot points

1. R3 1.145
2. R2 1.1427
3. R1 1.1413
PP 1.139
1. S1 1.1376
2. S2 1.1353
3. S3 1.1339

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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