EUR/USD: Extremely overbought

EUR/USD Monday's four-hour chart is pointing to extreme overbought conditions. At 1.1150, these conditions may be sufficient to send it down when the mood changes, in the opinion of Yohay Elam from FXStreet.

Key quotes

“The Relative Strength Index on the four-hour chart is pointing to a downside correction as it is well above 70 – in overbought territory.” 

“Support awaits at 1.1120 and 1.11, both high points from earlier this year. The next line is 1.1045, a swing high from Friday, and then 1.1010, a resistance line from last week.”

“Resistance awaits at 1.1170, which was a high point in January, followed by 1.1205.”