EUR/USD: Overbought conditions

EUR/USD has been advancing amid hopes for an imminent Fed rate cut but the ECB may follow. Monday'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 well above the 70 mark – indicating overbought conditions. That implies a snap back to lower levels. Other indicators such as momentum are positive while the pair trades above the 50, 100, and 200 Simple Moving Averages.”

“Resistance awaits at the round number of 1.11, which held EUR/USD down in early February. It is followed by 1.1120.”

“Support is at 1.1050, a swing high from Friday. It is followed by a temporary cap of 1.1010.”