EUR/USD set to break the 1.13 hurdle

EUR/USD is adding to Friday’s gains as Monday's 4-hour chart shows the pair hitting the 1.13 resistance. Yohay Elam, an analyst at FXStreet, notes that technical indicators are favouring the break.

Key quotes

“EUR/USD is battling the round 1.13 level, which capped it earlier this month and serves as resistance. Will it break or bounce? Buyers seem to have the wind in their backs, as the pair trades above the 50, 100, and 200 Simple Moving Averages on the 4-hour chart and enjoys upside momentum. The Relative Strength Index is still below 70, thus outside overbought conditions.” 

“Above 1.13, the next line to watch is the double-top of 1.1350, last seen in late June. It is followed by 1.1385 and 1.1410.” 

“Support awaits at 1.1265, a swing high from late June, followed by 1.1225, a support line from late last week.”