EUR/USD Technical Analysis: upside corrective near term. Flirting with the base of the cloud. Scope for a test of 1.1790.

• The pair is advancing for the second session in a row on Monday, retaking the 1.1700 handle and above after bottoming out in the mid-1.1600s on Friday.
• Spot so far surpassed the key resistance area around the 1.1700 handle, where sits the 200-hour SMA and considered quite a relevant level.
• Immediately above is located the 1.1720 region, where converge a retracement from the April-May decline, the December 2017 low and the base of the daily cloud. Further gains to the critical 1.1790/1.1800 band should come to the fore if this band is cleared.
• The loss of the 21-day SMA, today at 1.1657 should pave the way for a visit to the 1.1530 region ahead of the 1.15 neighbourhood.
• The daily RSI (14) is hovering over the 51 level, signaling that a consolidative trade remains in place.

EUR/USD daily chart

Daily high: 1.1711

Daily low: 1.1675

Support Levels

S1: 1.1637

S2: 1.1588

S3: 1.1563

Resistance Levels

R1: 1.1712

R2: 1.1737

R3: 1.1786