EUR/USD: A small correction may happen before the upside resumes

EUR/USD Tuesday's four-hour chart is showing overbought conditions, as FXStreet’s analyst Yohay Elam notes.

Key quotes

“The Relative Strength Index on the four-hour chart is flirting with the 70 level – entering overbought conditions. That implies a downward correction. Other indicators are positive, including upside momentum and trading above the 50, 100, and 200 Simple Moving Averages.” 

“Resistance awaits at 1.0955, the daily peak, and the highest in two weeks. The swing high of 1.0970 and the mid-April top of 1.0995 are next.”

“Some support awaits at the early May swing high of 1.0925, followed by 1.0895, a high point last week.”