FX.co ★ Short-term technical analysis on EURUSD for December 5th, 2022.

Green lines - Fibonacci retracements

Red line- higher highs

EURUSD is trading above 1.0560 as price continues making higher highs and higher lows. Price has now reached the 38% Fibonacci retracement of the entire decline from 1.2270. The RSI is entering overbought levels and we might see the end of the upward wave from 0.9535. The RSI is also making new higher highs implying that this upward move has still room to go. We might see a pull back towards 1.0420 but overall bulls remain strong and in control of the trend. Overall in the near term we favor a pull back, but for longer-term, the chances of a move towards the 50% retracement remain high.