EUR/USD overbought territory might lead to strong pullback
The EUR/USD failed to continue gaining after reaching the 1.1437 high this year. Hitting higher lows, failing to cut 1.1420 and the European Central Bank (ECB) dovish outlook for inflation and monetary policy gives signs of a strong pullback and will open the door for a downside move. Cutting 1.1365 as a strong point will push the EUR/USD lower toward 1.1345, 1.1325 and 1.1295 as next support levels.
However, a bullish sentiment will be created once the EUR/USD breaks 1.1420, reaching near-term resistance levels 1.1455 and 1.1475.
Disclaimer: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.