EUR/USD: Overbought conditions suggest a correction

At the press time, the EUR/USD pair is gaining 0.23% at 1.1355 though Thursday's 4-hour chart is pointing to overbought conditions which implies a downward correction, Yohay Elam, an analyst at FXStreet, briefs.

Key quotes

“The Relative Strength Index on the 4-hour chart is above 70, pointing to overbought conditions – and implying a downward correction. However, momentum remains positive and the EUR/USD pair is trading above the 50, 100, and 200 Simple Moving Averages.” 

“Resistance is at 1.1370, the daily high, followed by 1.1420, a high point in early June.”

“Support is at 1.1350, the former triple top, followed by the round 1.13 level, which worked as resistance in early July.”