EUR/USD: Technicals point to a short-term correction

EUR/USD has been taking a pause from its surge just under 1.16 while Thursday's 4-hour chart is pointing to mildly overbought conditions. Yohay Elam, an analyst at FXStreet, believes the pair technical outlook suggest a correction.

Key quotes

“The Relative Strength Index on the 4-hour chart is above 70 – pointing to overbought conditions and to a decline. EUR/USD is enjoying upside momentum and trades above the 50, 100, and 200 Simple Moving Averages.” 

“Resistance awaits at 1.16, the fresh high, and a psychologically significant level. It is followed by 1.1620, a cap from late 2018, and then by 1.17 – EUR/USD launch price.” 

“Support is at the daily low of 1.1560, followed by 1.1505, a temporary low. Next, 1.1470 and 1.14 await EUR/USD.”