- EUR/USD’s daily chart shows signs of uptrend fatigue.
- A pullback to short-term SMA support could be seen.
EUR/USD is trading near 1.2150 in Asia, representing a more than 1.5% gain for the week.
While the pair ticked higher for the third straight day on Thursday, it created a candle with a long upper wick – a sign of uptrend fatigue – validating the above-70 or overbought signal on the 14-day Relative Strength Index.
As such, a pullback to the ascending 5- day Simple Moving Average (SMA), currently located at 1.2078, could be in the offing. A violation there would expose the 10-day SMA at 1.991. A close below 1.20 would weaken the immediate bullish case.
On the higher side, resistance is seen at 1.2175 (Thursday’s high) and 1.22 (psychological level).
Daily chart
Trend: Pullback likely
Technical levels
