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EUR/USD Today Technical Report 03/05/2016

EUR/USD continued surging on Monday, breaking and closing above the psychological barrier of 1.1500 (S1). The short-term outlook still looks positive and therefore, I would expect the bulls to set the stage for extensions towards the 1.1620 (R1) territory, defined by the peak of the 25th of August. Taking a look at our short-term oscillators though, I see signs that a corrective setback could be on the cards before the bulls decide to pull the trigger again, perhaps even back below the 1.1500 (S1) hurdle. The RSI has topped within its overbought territory and could fall below 70 soon, while the MACD stands well above both its zero and signal lines but shows signs of topping as well. Switching to the daily chart, I see that the close above 1.1500 (S1) has probably signaled the exit of the sideways range the pair had been trading between that obstacle and the 1.0800 key zone. As a result, I would consider the medium-term outlook to have turned somewhat positive as well.

EURO 03

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