EUR/USD ignores overbought conditions and looks at the 1.1870 resistance

EUR/USD climbs to 4-week highs around 1.1860 despite Tuesday's 4-hour chart is showing overbought conditions, Yohay Elam, an Analyst at FXStreet, reports. 

Key quotes

“The Relative Strength Index on the 4-hour chart is above 70 – indicating overbought conditions. This development implies a downside correction. On the other hand, euro/dollar benefits from upside momentum and trades above the 50, 100, and 200 Simple Moving Averages.”

“Resistance awaits at the fresh high of 1.1870. It is followed by the round 1.19 level, and then by the September peak of 1.1920.” 

“Support is at the former stubborn peak of 1.1830 and then by 1.1795 and 1.1770.”