EUR/USD shows strength, resistance seen at 1.1780

EUR/USD has embarked on a corrective pullback to the mid-1.1700s after clinching fresh tops just above 1.18 the figure on Wednesday. Notwithstanding, Thursday's 4-hour chart is pointing to fresh gains as the pair shows bullish signs, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“Momentum on the 4-hour chart remains positive despite some softening, and the Relative Strength Index is below 70 – outside overbought conditions. EUR/USD continues trading above the 50, 100, and 200 Simple Moving Averages, and it continues setting higher highs and higher lows – all bullish signs.” 

“Initial resistance awaits at 1.1780, a high point early in the week. It is followed by the new 22-month high of 1.1806. The next lines to watch are 1.1820 and 1.1850.”

“Support is at 1.17, that cushioned EUR/USD this week, followed by 1.1625, which capped it last week.”