EUR/USD Technical Analysis: the base of the cloud still caps the upside. Squeeze higher could test 1.1790.

• The recent bullish attempt in EUR/USD has run out of legs in the key resistance area near 1.1750, matching last week’s tops.
• Spot, however, remains unable to clear the base of the daily cloud on a more sustainable fashion, which would allow for a run to the 1.1790/1.1800 band, or monthly peaks.
• Last Tuesday’s bearish ‘outside day’ forced the pair to drop to the 1.1570 region, sparking a strong rebound afterwards exclusively on the back of USD-selling.
• On the downside, the 21-day/21-hour SMA offers string contention ahead of the recent lows in the 1.1575/70 band.
• Near term, spot remains neutral/bearish while below last Monday’s tops at 1.1790.

EUR/USD daily chart

Daily high: 1.1751

Daily low: 1.1689

Support Levels

S1: 1.1653

S2: 1.1583

S3: 1.1540

Resistance Levels

R1: 1.1766

R2: 1.1809

R3: 1.1878