EUR/USD: Technical picture draws a potential break of the 1.1470 resistance

EUR/USD is posting small losses as of writing, down -0.1% to 1.1435. Nonetheless, Tuesday's 4-hour chart is painting a favorable picture for bulls, Yohay Elam, an analyst at FXStreet, reports.

Key quotes

“EUR/USD is capped by 1.1470 – the level that has been capping it in recent days – yet this resistance may be broken. The currency pair is trading above the 50, 100, and 200 Simple Moving Averages on the four-hour chart and benefits from upside momentum. The Relative Strength Index is below 70 – outside overbought conditions.”

“Some resistance awaits at 1.1452, the previous July peak, ahead of 1.1470, which is not only the recent top but also the highest since March. Further above, 1.1495 and 1.1520 await EUR/USD.”

“Support is at 1.1405, a swing low from early in the week, followed by 1.1370, a stepping stone on the way up which also provided support on the way down. The next lines are 1.1325 and 1.13.”