EUR/USD bulls take a breather just below the 1.1200 resistance
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UR/USD slipped on Wednesday after failing multiple times to break the 1.1200 resistance, though the pair remains in a consolidation phase as long as it holds above key pivots at 1.1124/14 (trendline support and rising 10DMA) and 1.1100 (higher base and 23.6% Fibonacci retracement of 1.0777/1.1201).
The daily chart shows emerging negative signals, with the 14-day momentum diverging from the price and moving lower, while the RSI has exited overbought territory. However, these signals require confirmation.
On the weekly chart, initial negative signals are also present, as EUR/USD appears set for a weekly close in red following two strong bullish weekly candles, and overbought conditions are present. This is in contrast with the monthly chart, where the bullish structure remains firm, supported by technical studies, with the pair on track for its largest monthly gain since November 2022.
Clearer directional signals will likely emerge with a break of either pivot (1.1100 or 1.1200).
