FX.co ★ EUR/USD shows overbought signs

The EUR/USD pair climbed as much as 1.0970 today, registering a new high. Now, it's trading at 1.0926 at the time of writing. After its amazing rally, we cannot exclude a temporary correction.

Fundamentally, the Eurozone Final CPI and Final Core CPI matched expectations, while the US Prelim UoM Consumer Sentiment came in better than expected, at 63.9 points versus 60.1 points estimates, boosting the USD.

EUR/USD 1.0918 Key Support!

Technically, EUR/USD failed to reach the monthly R1 of 1.0980 signaling exhausted buyers. Now, it has dropped below the median line (ml) which represented dynamic support.

It has closed below the 1.0933 former low indicating a larger sell-off. Still, in the short term, it could come back to test and retest the broken median line (ml) before going down.

EUR/USD Outlook!

Testing and retesting the median line (ml), registering false breakouts and making a new lower low, a bearish closure below today's low of 1.0918 is seen as a selling signal.