EUR/USD: Overbought conditions not to prevent a test of the 1.1240 level

EUR/USD Thursday's 4-hour chart is pointing to overbought conditions, Yohay Elam, an analyst at FXStreet, reports. Nonetheless, that is the only sign suggesting a temporary speed bump with resistance seen at 1.1240. UOB also thinks the pair is ready for a test of the 1.1235 level.

Key quotes of Elam

“The Relative Strength Index on the 4-hour chart is above 70 – indicating overbought conditions and suggesting a drop. Nevertheless, EUR/USD broke above the uptrend channel and trades above the 50, 100, and 200 Simple Moving Averages, suggesting a broader uptrend.” 

“Beyond the daily high of 1.1215, the next cap is at 1.1240, a swing high from March. It is followed only by 1.1360, a stepping stone on the way down back then.”

“Some support is at 1.1165, the daily low, followed closely by 1.1150, a swing high in March.”