EURUSD bulls prod golden Fibonacci ratio amid overbought RSI
EURUSD hovers near the highest level in 14 weeks, recently picking up bids to reverse the previous day’s pullback from the 61.8% Fibonacci retracement of the July-October downside, also known as the Gold Fibonacci ratio. Apart from the key Fibonacci ratio surrounding 1.0965, the overbought conditions of the RSI (14) line also challenge the Euro buyers. It should, however, be noted that the pair’s successful trading above the 200-SMA and the bullish MACD signals keep the bulls hopeful of crossing the immediate hurdle, which in turn opens the door for the pair’s rally toward the 78.6% Fibonacci ratio and the yearly high marked in July, respectively near 1.1100 and 1.1275.
On the flip side, the EURUSD pair’s pullback could aim for the 50% Fibonacci retracement level surrounding 1.0865 but the bears need validation from the 200-SMA level of 1.0800. Following that, the early-month swing high of around 1.0750 could test the Euro sellers. Above all, the pair buyers remain hopeful unless they witness a daily close beneath a convergence of the 23.6% Fibonacci retracement and a seven-week-old upward-sloping support line, close to 1.0650.
Overall, EURUSD bulls approach the key upside hurdle ahead of the US Durable Goods Orders and the weekly employment data, making it the key pair to observe ahead of Thursday’s Thanksgiving holiday.
