EUR/USD: A rally, a necessary correction and another move higher

Technicals are pointing to a classic uptrend as Thursday's 4-hour chart is showing the EUR/USD pair exited overbought conditions and is ready to rally, Yohay Elam, an Analyst at FXStreeet, reports. 

Key quotes

“The Relative Strength Index on the 4-hour chart has dropped below 70 – exiting overbought conditions. That is only the latest bullish sign joining others. Euro/dollar is trading above the 50, 100, and 200 Simple Moving Averages and benefits from upside momentum.”

“Resistance awaits at the fresh high of 1.1880, which was also a peak back in mid-September. The next lines to watch also date back to that time – 1.19 and 1.1920.” 

“Support is at the daily low of 1.1940, followed by 1.1795, a stepping stone on the way up. The next levels to watch are 1.1760 and 1.1720.”