EUR/USD Price Forecast: 1.1700 caps bulls as RSI overheats

The shared currency registers minimal losses of 0.13% versus the US Dollar as EUR/USD fails to surpass 1.1700, exacerbating the drop towards the 1.1660 area, despite retaining its current neutral-to-upward bias.

EUR/USD Price Forecast: Technical Outlook

The EUR/USD is poised to consolidate further, as price action has failed to extend the market structure of higher highs and higher lows. Momentum shifted bullish, as the Relative Strength Index (RSI) shifted overbought, an indication that bulls are in charge.

However, the path of least resistance for EUR/USD is for it to continue trading sideways.

For a bullish resumption, the first resistance for EUR/USD is 1.1700. A breach of the latter will expose the 1.1750 psychological level, followed by the May 6 high at 1.1795, ahead of 1.1800. On further strength, the next stop is the April 17 swing high of 1.1849.

On the downside, if EUR/USD dives below 1.1650, the next area of interest would become the 200-day Simple Moving Average (SMA) at 1.1631. Below this level lies the 1.1600 mark, followed by the 100-day SMA at 1.1574 and by 1.1500.

EUR/USD Price Chart – Daily