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    Technical Analysis – EURUSD rally pauses after reaching overbought levels on RSI

    EURUSD staged a strong rally from early February after breaching the key resistance level at 1.1000. This allowed the pair to break out of a range that it has been trading in since early December 2015. A high of 1.1375 was reached on February 11 but since then there has been a pullback as the pair had approached overbought levels on the daily RSI. The indicator reached the 70-point level and gave a sell signal.

    But MACD is above zero and is still rising, so there is scope for further upside momentum. However, prices need to remain above the 200-day moving average, which is currently acting as immediate support for any moves to the downside. This support area lies around 1.1113. A break below this would bring the pair to retest the 1.1000 level before entering back into the range and back to a neutral bias.

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