Two weeks ago the EUR/USD hit new lows this year near 1,035. However, buyers have been able to regain control since the price hit new lows.
Furthermore, Lagarde's recent comments have also supported the euro's recovery against the US dollar.
Daily time frame chart.
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Open account Try demo Download mobile app Download mobile appWhen we look at the main currency pair on the daily chart, we can see that the bullish momentum has intensified after the price has broken the chart pattern - falling wedge.
EUR/USD, Daily time frame chart. Source: xStation
1 hour time frame chart
However, on the 1-hour chart, we can see that the price is starting to show some signs of exhaustion and we cannot exclude the possibility that we may see a further pullback, at least in the short term, in the pair.
In the case of the RSI, we can see that the indicator is showing signs of being overbought, so there is a risk of having too much short-term long exposure, which could lead to a pullback in the pair.
EUR/USD, 1 hour time frame chart. Source: xStation 5
Source: currency-strength.com
Henrique Tomé, XTB Portugal
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