EUR/USD: Bullish technical picture points to a break of 1.18

EUR/USD is hesitating under 1.18 as the world's most popular currency pair retreats after two attempts to move toward the round number. Tuesday's 4-hour chart is painting a bullish picture with next resistance at 1.1870. On the flip side, initial support is seen at 1.1735, FXStreet’s analyst Yohay Elam reports.

Key quotes

“EUR/USD is trading above the 50 and 100 Simple Moving Average, and benefiting from upside momentum. However, it is capped under 1.18, which is a psychologically significant level, the highest in two weeks, and where the 200 SMA hits the price.” 

“Further above, 1.1870 was a high point in mid-September and it is followed by 1.1895 and 1.1915.”

“Support awaits at 1.1735, which provides support in early September, followed by 1.1730, a cushion from last week, and by 1.1610.”