EUR/USD technical analysis: Hits one-month high, key indicator most bullish since June

• EUR/USD has hit the highest level since September 16.
• The relative strength index is reporting strongest bullish bias in nearly four months.

EUR/USD is better bid near the one-month high of 1.1086 registered in the North American session on Wednesday and could challenge key resistance at 1.1110 in the next 24 hours, as a widely followed technical indicator is reporting strongest bullish bias since June.

The 14-day relative strength index, an indicator used to gauge the market trend and overbought/oversold conditions, is currently seen at 60.27, the highest level since June 28. A reading above 50 indicates bullish conditions.

The common currency has also found acceptance above the 50-day moving average for the first time since July 18. Further, the 5- and 10-day moving averages are trending north, indicating a bullish setup.

The outlook would turn bearish if the pair closes below 1.0991 – the low of Tuesday's long-tailed candle – although, as of writing, that looks unlikely.

Daily chart

Trend: Bullish

Technical levels