EUR/USD met some selling stress after rising to the mid-1.1700s during the Asian session closing much of the bullish gap seen at the start of the week. Despite this the pair is still holding above the key 1.1700 level so traders should be careful before expecting a continuity of Friday’s pullback from the recent high.
From a technical view the pair maintains a just bullish outlook as it remains above the 200-period Simple Moving Average (SMA) on the 4-hour chart display that dips are still being bought. The Relative Strength Index (RSI) is around 53 indicating mild positive impetus without being overbought while the MACD stays slightly above zero. This suggests buying pressure exists but it is not very strong yet.
However after Friday drop it is safer to wait for a clear move above 1.1750 which also aligns with the 23.6% Fibonacci level before gone further upside. The next resistance is near the recent high around 1.1847.
On the downside support is seen near 1.1692 (38.2% Fibonacci level). Below that a strong support zone lies around 1.1648–1.1644 where the 200-period SMA and 50% retracement meet. If the pair falls further the next levels to watch are 1.1596, followed by 1.1528 and 1.1441.
