EUR/USD Price Analysis: Hits highest level since Oct. 10, 2019
- EUR/USD prints nine-month highs above 1.1540 on sustained dollar selling.
- RSI shows overbought conditions, but no signs of buyer exhaustion on the price chart.
- The bias remains bullish for stronger gains toward the next hurdle at 1.1570.
EUR/USD rose to 1.1542 a few minutes before press time. That level was last seen on Oct. 10, 2019.
The pair closed well above 1.15 on Tuesday as the European Union (EU) fiscal deal and progress on the coronavirus vaccine boosted demand for the risk assets and weighed over the safe-haven US dollar, which took a beating across the board.
The 14-day relative strength index (RSI) is now reporting an above-70 or overbought reading on all major timeframes - the hourly, 4-hour, and the daily chart.
However, there are no signs of buyer exhaustion on the price chart yet. As such, betting a pullback solely on the basis of an overbought reading on the RSI could prove costly.
The bias remains bullish and the pair could challenge resistance at 1.1570 (Oct. 1, 2019 high) during the day ahead. The bullish outlook would be invalidated if the pair finds acceptance below the former hurdle-turned-support at 1.1422 (June 10 high), invalidating the higher lows setup.
Daily chart
Trend: Bullish