EUR/USD: The trend is positive but a setback is on the cards

Another day, another round number smashed – at 1.11, the world's most popular currency pair is trading at the highest since March while Friday's four-hour chart is showing stretched conditions, FXStreet’s analyst Yohay Elam briefs.

Read: EUR/USD busted through the 200-day ma scope for the 1.1240 December high – Commerzbank

Key quotes

“The Relative Strength Index on the four-hour chart is just above 70 – pointing to overbought conditions and a potential downside correction. Momentum remains to the upside and the EUR/USD pair is trading well above the 50, 100, and 200 Simple Moving Averages.” 

“Support awaits at 1.1090, which was a peak in the winter, and it is followed by 1.1050, also a battle line. Further down, the former peak of 1.1010 now turns into support.”

“Some resistance is at 1.1111, which is 0.90 on USD/EUR, followed by the late-March peak of 1.1150.”