EUR/USD Bulls Test 1.17 as RSI Turns Overbought
The EUR/USD currency pair is on track for its fourth consecutive weekly gain, despite briefly erasing its earlier intraday advance. At the time of writing, the pair trades at around 1.1682 after reaching a high of 1.1700, its highest level since May 14.
Strategists at Scotiabank attribute the solid gains in the EUR this week to a broadly lower USD, as well as front-end spreads narrowing considerably since the end of June. This has supported the fundamental improvement in the EUR in recent weeks.
From a technical perspective, the near-term outlook remains bullish for EUR/USD, with the pair having reclaimed its 50-day, 100-day, and 200-day Simple Moving Averages (SMAs) in recent weeks. These averages are clustered between roughly 1.1475 and 1.1631.
However, momentum indicators suggest that the latest advance is becoming stretched, with the Relative Strength Index (RSI) standing near 73, indicating overbought conditions that could limit immediate upside.